Jollibee boosts Tim Ho Wan capital by S$100M

JOLLIBEE Foods Corp. has increased its capital commitment to Titan Dining LP, the private equity fund that owns the Tim Ho Wan brand and stores, to S$414 million ($313.2 million) to fund its expansion.

In a disclosure to the Philippine Stock Exchange, the Philippine fast-food giant also said the participating interest of unit Jollibee Worldwide Pte. Ltd. in Titan would rise to 92% from 90% through the purchase of a 2% interest in another limited partner in the fund for S$7.7 million.

The fund size of Titan will increase by S$100 million to S$450 million, Jollibee said. “These amendments are necessary to support the growth expansion of Tim Ho Wan, other brands and other future food and beverages concepts that will be part of Titan’s portfolio,” it told the exchange.   

Jollibee shares rose by 1.43% or P3.60 to P255 apiece at the close of trading.

Tim Ho Wan operates 78 outlets in Asia and has stores in China, Taiwan, Hong Kong, Macau, Singapore, and the Philippines. Jollibee said it seeks to have 100 Tim Ho Wan restaurants in mainland China mid-term.

Jollibee invested S$45 million for a 45% stake in Titan, the master franchisee of Tim Ho Wan in the Asia-Pacific region, in May 2018.

The company noted at that time that by investing in the fund, it could acquire a substantial interest in Tim Ho Wan’s master franchise in the region through a purchase mechanism provided for in the investment agreement. To prepare for this, Jollibee set up a franchise operation of Tim Ho Wan in Shanghai.

In October 2019, Jollibee Worldwide’s capital commitment to Titan increased to S$120 million from S$45 million, its participating interest rose to 60% and the fund size of Titan doubled to S$200 million. Titan also expanded its assets by acquiring the Tim Ho Wan brand and trademarks. 

In October 2020, Jollibee’s participating interest in Titan increased further to 85% from 60% after its unit bought the 25% participating interest of another investor in the fund for S$36.3 million.   

In August 2021, Jollibee purchased the remaining 15% of other investors in Titan. Three months later, it entered into an amended limited partnership agreement with Titan to increase the fund size to S$250 million.

More investors also joined the fund with a 10% participating interest in Titan. Jollibee Worldwide’s commitment increased to S$225 million or 90% of the increased fund size and total commitments.   

In September 2022, the fund size of Titan increased by S$100 million to S$350 million, with Jollibee Worldwide’s fund commitment reaching S$315 million.

The listed Philippine fast-food company has two joint ventures with Titan for Tim Ho Wan in China, and for Tiong Bahru Bakery and Common Man Coffee Roasters in the Philippines. Tim Ho Wan has 19 restaurants in China, mostly in Shanghai.

Titan also owns and operates other businesses in the food and beverage segment such as the Open Farm Community, Tippling Club, Noka, Bochinche, The Butcher’s Wife, and Drunken Farmer brands. It also has a presence in the nonfood and beverage segment via its Strip, Browhaus, and Spa Esprit brands.

As of end-November, Jollibee had 6,805 stores globally across various brands, consisting of 3,487 international stores and 3,318 stores in the Philippines.   

Its largest brands by store outlets worldwide consist of Jollibee at 1,645, Coffee Bean and Tea Leaf at 1,146, Highlands Coffee at 757, Chowking at 614, and Mang Inasal at 571. — Revin Mikhael D. Ochave