In a disclosure to the Philippine Stock Exchange, JFC said it will pay 30 million renminbi for 55% of San Pin Wang, which operates 34 stores selling low-priced beef noodles in Nanning and Liuzhou in southern China.
JFC said San Pin Wang is a joint venture with Guangxi Zong Kai Food and Beverage Investment Company Ltd. (GZK), which will own the remaining 45% of the business.
Both JFC and GZK will invest a total of RMB 20 million to fund San Pin Wang's expansion. The venture is expected to be fully operational by January 2011.
"I believe that we will be able to grow San Pin Wang to a very large and successful fast food chain in China. We wish to bring this brand to consumers in many other parts of China beginning with the neighboring provinces in South China," said JFC chairman and chief executive officer Tony Tan Caktiong.
Currently, JFC operates 2 brands in China: Yonghe King in Shanghai, and Hong Zhuang Yuan in Beijing. Yonghe King had 165 stores while Hong Zhuang Yuan had 46 stores as of March 31. JFC earns 9% of its revenues from China.
JFC runs the Philippines' largest fast food network of 1,569 stores. Worldwide, it has 334 stores.
JOLLIBEE FOODS CORP.: Labor Productivity Benchmarks and International Gap Analysis (Labor Productivity Series)
