MANILA, Philippines - A wholly-owned subsidiary of fastfood chain Jollibee Foods Corp. has sold its assets in Delifrance to CafeFrance Corp. for P100 million.
In a disclosure to the Philippine Stock Exchange on Wednesday, Jollibee said the sale by its subsidiary, Fresh N' Famous Foods Inc. (FNF) is part of its strategy to focus its resources in building larger quick-service restaurant businesses.
With the sale of assets to CafeFrance Corp., FNF will terminate its franchise agreement with Delifrance Asia Limited on December 31, 2010.
Delifrance started operations in the Philippines in 1995 as a joint venture with Delifrance Asia Limited, and as an exclusive franchise of Jollibee since 2006.
There are 23 Delifrance outlets in the country, 20 of which are run by Jollibee through FNF, 3 by franchises and 2 satellite booths.
The sale of the assets and the termination of operations of Delifrance will not have a major impact on Jollibee's bottomline, Jollibee Chief Financial Officer Ysmael Baysa said.
The Jollibee Group of Companies runs the country's largest fastfood network with 1,582 stores that include the Jollibee brand, Chowking, Greenwhich, Red Riboon, Delifrance and Manong Pepe's.
In other countries, Jollibee operates 362 stores.
Shares of Jollibee were steady at P85.05 in late-trading on Wednesday.