Jollibee sells 11% stake in Highlands Coffee for $88m
This effectively cedes control of the brand to its Vietnamese founder.
Jollibee Foods Corporation sold its 11% stake in Highlands Coffee to Viet Thai International Joint Stock Company for a total cash consideration of $88m (VND2.3t), effectively losing its controlling stake in the coffee chain business.
The transaction values the Vietnam coffee platform at an implied 100% equity value of $800m, representing a substantial premium to the carrying value of the investment in the Jollibee Group's books.
The Jollibee Group will retain board representation in Highlands Coffee together with minority protections under the shareholders' arrangements. The proceeds from the transaction will be used to reduce debt, reinvest in other high-growth platforms, and deliver shareholder returns, in line with its capital allocation priorities.
Jollibee Group will now hold 49% of Highlands Coffee, alongside Viet Thai International at 51%. Viet Thai International is the company of Highlands Coffee’s Vietnamese founder, David Thai.
Previously, a report from Bloomberg said that Highlands Coffee was exploring an initial public offering in Vietnam with plans to raise $300m to $400m.
Amongst its Coffee and Tea portfolio, Jollibee also owns The Coffee Bean & Tea Leaf, Compose Coffee, and Milksha. It also owns a controlling interest in Singapore coffee chain Common Man Roasters.
