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Jollibee Foods Corporation (JFC) will soon fully take over Hong Kong dim sum chain Tim Ho Wan, according to CNN Philippines.
Currently, Jollibee Worldwide Pte Ltd, which is a wholly owned subsidiary of JFC, already owns an 85 per cent participating interest in Singapore-based Titan Dining LP, the private equity fund that owns the Tim Ho Wan brand.
Now, it will pay S$71.56 million to purchase the remaining 15 per cent interests from other investors in Titan Dining.
Plans to expand aggressively in China
JFC first invested about S$45 million in Titan Dining in May 2018, giving it a 45 per cent stake in the company.
It grew its stake to 60 per cent in October 2019, increasing its capital commitment to S$120 million.
"JFC aims to build as an important part of its portfolio a significant business serving Chinese cuisine in different parts of the world," said the fast food giant.
It currently owns four other brands serving Chinese cuisine: Chowking, Yonghe King, Hong Zhuang Yuan and Panda Express.
Marketing Interactive reported that JFC has already started a joint venture with Titan Dining in September 2020, by opening a Tim Ho Wan restaurant in Shanghai, which is the first outlet in mainland China.
The joint venture now has three Tim Ho Wan outlets in Shanghai, and JFC plans to aggressively expand the brand in mainland China, with a target of reaching 100 restaurant outlets within the next four years.
In comparison, the Tim Ho Wan brand currently operates 53 outlets in Asia, with the most outlets concentrated in Singapore and Taiwan, with 12 outlets each, according to The Inquirer.
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Top image via Tim Ho Wan/FB and Jollibee/FB.