Jollibee Foods Corporation (JFC), a Manila-listed fast-food giant, announced to acquire the master franchise of Tim Ho Wan in the Asia Pacific region, excluding Hong Kong, by investing S$45 million (US$33.7 million) with the Michelin-star dim sum restaurant chain’s owners.
On Wednesday, JFC announced that it will invest S$45 million in a private equity fund Titan Dining LP, which has executed a binding agreement for the acquisition of Tim Ho Wan Private Limited, the master franchise holder of the “Tim Ho Wan” brand in Asia Pacific (excluding Hong Kong), and its associate Dim Sum Pte. Ltd, which owns and operates Tim Ho Wan stores in Singapore, according to a filing on the Philippine Stock Exchange.
JFC’s investments would account for 45% of a total committed investment in Titan Dining LP totaling S$100 million. When the term of the fund in Titan Dining ends in seven years, JFC will have the opportunity to acquire a substantial ownership in Tim Ho Wan’s master franchise in the Asia Pacific region, excluding Hong Kong.
JFC chairman Tony Tan Caktiong said this investment gives JFC the opportunity to have a significant interest in the Tim Ho Wan franchise in the long term and will bring very healthy financial returns to JFC.
“Our long-term interest in Tim Ho Wan is in line with JFC’s mission: to serve great tasting food and spread the joy of eating to everyone,” Tan said.
Originated in Hong Kong in 2009, Tim Ho Wan, which literally means “get lucky” in Chinese, currently operates more than 20 outlets in nine countries including Hong Kong, Taiwan, Singapore, Philippines, Thailand, Indonesia, Malaysia and Australia, according to its website. On its logo, there are several small Chinese words meaning “Hong Kong’s flavors.”
JFC currently operates 2,895 restaurant outlets in the Philippines and 943 stores abroad. In China, it owns Chowking, Yonghe King and Hong Zhuang Yan brands and plans to operate as a franchisee of Tim Ho Wan in Shanghai.