Jollibee plans to split the business into two companies, one focused on the Philippines and another focused on the rest of the world, a stock exchange filing on Tuesday showed.
The international business, which includes fast-growing brands overseas, will become a separate company aimed at investors seeking global expansion rather than steady domestic returns.
Current JFC shareholders are expected to receive shares in the new international company on top of the shares they already own.
Big picture
The Jollibee Group was founded by Tony Tan Caktiong in the late 1970s, starting as a small ice cream business before shifting into fast food that adapted to Filipino tastes with menu items such as fried chicken and sweet-style spaghetti.
Caktiong, a part owner and vice chair of DoubleDragon Corp. led by Edgar “Injap” Sia II, has had exposure to US capital markets after the group listed its subsidiary, Hotel101 Global, on the NASDAQ last July.
What JFC is saying
Jollibee said the US listing, which could involve an initial public offering or IPO, should make each business easier to understand and value, instead of bundling very different markets into a single stock.
“The structure is designed to sharpen strategic focus for each company and support each business in pursuing its strategic ambitions, while enhancing the clarity of each equity story and enabling investors to engage with the business profiles most aligned with their investment objectives,” JFC said in the filing.
The move comes as JFC’s share price remains under pressure, with the stock down nearly 32 percent over the past 12 months.
JFC shares, which were suspended until 10:30 a.m. following the announcement, last traded at P183.40, valuing the company at P205.5 billion.
Global stores now dominate
JFC operated 10,304 stores worldwide as of September last year, with 6,859 or about 66.5 percent overseas and 3,445 or roughly 33.5 percent in the Philippines.
Its portfolio spans homegrown brands such as Jollibee, Chowking, Mang Inasal, and Greenwich, alongside international concepts including Smashburger, Tim Ho Wan, The Coffee Bean and Tea Leaf, Highlands Coffee, Compose Coffee, and Milksha.
—Edited by Miguel R. Camus
