Jollibee to buy majority stake in Taipei resto chain
Jollibee Foods Corp. (JFC), the country's largest fast food operator, is acquiring a majority stake in a restaurant chain in Taiwan through its wholly-owned unit Jollibee Worldwide Pte. Ltd.
In a statement, the company said Jollibee Worldwide signed a joint venture agreement with owners of the Lao Dong restaurant business that is based in Taipei.
Under the terms, JFC will buy 70 percent of Lao Dong for P61.1 million. It will also invest P30.6 million in the joint venture while the present owners will invest another P13.1 million. The deal is expected to be completed within this year.
"The joint venture shall operate and expand the Lao Dong restaurant chains in Taiwan and in the People's Republic of China," JFC said.
"Further, the head and one of the present owners of the Lao Dong business, Mr. Liu Cheng Hsiung, shall assist the Jollibee group in developing food products and processing and preparation techniques for its business units in China, the Philipiines and other countries."
Currently, Lao Dong, which serves beef noodles as its core products, has eight stores and a commissary in Taipei. It has annual sales of NT 121.6 million.
JFC runs the largest quick food service network in the Philippines. As of April 30, 2008, it was operating a total of 1,469 stores in the Philippines and 194 stores overseas. Its popular brands include Jollibee, Chowking, Greenwich, Delifrance and Red Ribbon.