Is Jollibee Selling a Minority Stake in Highlands Coffee?
Jollibee Foods Corporation is reportedly planning to sell a minority stake in Highlands Coffee, a move that could eventually lead to an initial public offering of the Vietnamese coffee chain.
According to a report by news agency Reuters, JFC is considering the sale of a 10 to 15 percent stake in the chain to an investor. The sale would value the coffee company at about $800 million (about P44.4 billion).
Reuters quoted two sources familiar with the reported transaction.
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The sale could eventually lead to Highlands Coffee going public, which Reuters said JFC has been considering “for many years.”
In a disclosure to the Philippine Stock Exchange, JFC declined to comment on the news.
“As a matter of ongoing practice, Jollibee Foods Corporation continues to evaluate investment opportunities to grow the business,” the company said. “We do not comment on possible transactions; we only discuss transactions that have been completed and duly disclosed to our regulators.”
Highlands Coffee also did not respond to a request for comment from Reuters.
JFC bought a minority stake in Highlands Coffee in 2012 before eventually taking a controlling interest. Established in 1999, Highlands Coffee is now the leading coffee chain in Vietnam based on earnings, according to market research firm Statista, with over 500 stores in its home country as well as the Philippines.