China OKs Jollibee acqusition of a Beijing-based chain

MANILA, Philippines - Jollibee Foods Corp., the country's largest owner and operator of fast food restaurants, on Thursday disclosed that it has completed the purchase of a Beijing-based chain of restaurants. In a statement to the Philippine Stock Exchange, Jollibee Foods said China's Ministry of Commerce approved its bid to buy Hongzhuangyuan for P2.5 billion, through its subsidiary, Jollibee Worldwide Pte. Ltd. This is the third overseas acquisition of Jollibee Foods. Hongzhuangyuan, which has an estimated annual sales of P1.3 billion, operates a total of 38 restaurants of which 31 are in Beijing and seven are franchised stores situated in other cities in China. The company said Jollibee Worldwide has already paid 246.4 million Chinese yuan as initial payment and the balance amounting 132.6 million yuan will be paid within the next 12 months. As of August 30, Jollibee Foods is operating a total of 1,480 stores in the Philippines: Jollibee, 636; Chowking, 377; Greenwich, 231; Red Ribbon, 204; Delifrance, 27 and Manong Pepe, 5. In foreign operations, the group had 223 stores: Yonghe King in China, 123; Jollibee in the US, 19: Jollibee Brunei, 11; Red Ribbon in the US, 25: Chowking in the US, 14; Chowking in Dubai, 10; Chun Sui Tan in China, one and 20 other stores in the other countries for a total of 1,703 stores worldwide. GMANews.TV