Jollibee Foods Corp says it will invest S$45 million (PHP1.74 billion/US$33.5 million) in a private equity fund to acquire the master franchise of Tim Ho Wan in the Asia Pacific.
The Filipino fast-food giant says it will account for 45 per cent of total committed investment in Titan Dining, worth S$100 million. Jollibee says Titan has a binding agreement to acquire 100 per cent of the Asia-Pacific master franchise holder of the Tim Ho Wan brand, Tim Ho Wan (THWPL) and its affiliate Dim Sum. The Chinese dimsum restaurant chain has 45 locations in Australia, China, Hong Kong, Malaysia, Singapore, Taiwan, Thailand, the Philippines and Vietnam.
As well as bringing “very healthy financial returns” to Jollibee, according to JFC chairman Tony Tan Caktiong the deal will combine Tim Ho Wan’s Michelin-star barbecue pork buns with Jollibee’s stable of Chinese restaurants: Chowking in the Philippines, and Hong Zhuang Yuan and Yonghe King in China. The three Chinese restaurants accounted for 23 per cent of systemwide sales last year, says Jollibee.
After the seven-year term of Titan Dining, Jollibee says it will have the option to acquire “substantial ownership” of the Tim Ho Wan master franchise in Asia Pacific.
The Filipino company says it will run a Tim Ho Wan franchise in Shanghai to prepare for that possibility.