Fast food giant Jollibee Foods Corporation (JFC) has taken full ownership of food manufacturer in China, Happy Bee Foods Processing Pte. Ltd., after acquiring the remaining 30-percent stake.
JFC told the local bourse that through its wholly owned subsidiary Jollibee Worldwide Pte. Ltd (JWPL), it had obtained governmental and regulatory approvals in the People’s Republic of China for the transfer of assets in Happy Bee Foods Processing in Anhui, China.
It also completed the transfer of shares in Happy Bee in Singapore.
Prior to this government approval, JWPL owned 70 percent of Happy Bee, a Singapore corporation; while its partner Hua Xia Harvest Holdings Pte. Ltd. (Hua Xia) owned 30 percent.
Happy Bee (Singapore) owns 100 percent of Happy Bee Foods Processing in Anhui, China.
Happy Bee Anhui operates a manufacturing facility in Anhui, China that services the requirements of JFC’s Yonghe King business and produces and sells foods for business institutions other than JFC’s brands.
With the change in ownership, Happy Bee will no longer produce and sell food products to institutions other than JFC’s restaurant businesses.
As consideration for the acquisition of the additional 30 percent, JFC, through its subsidiaries, has effectively conveyed to Hua Xia certain manufacturing facility assets worth US$ 10.34 million related to the production and sale of products for outside institutions.
“The transaction is basically an asset for equity swap. JFC has minimal net cash outlay for this acquisition,” the company said.
JFC said the full ownership of the food processing facility will enable the company to focus on supporting the growth of its Yonghe King business and on further improving its food quality and increasing the assurance of its food safety.
Yonghe King is JFC’s largest business in China with a total of 316 stores as of Oct. 31, 2016 and contributes 8 percent to JFC’s worldwide system wide sales. Happy Bee Anhui produces the food products sold at Yonghe King stores.
JFC operates a total of 22 commissaries worldwide: 15 in the Philippines, three in China, three in the United States and one in Vietnam.
It is also building three additional commissaries in Luzon Island in the Philippines and a joint venture poultry processing plant in a joint venture with Cargill.
It is also exploring a joint venture with ISE FOODS, INC. a Japanese firm for an egg production facility in the Philippines. (PNA)