Corporate News

Jollibee buys out Sia from Mang Inasal chain

Posted on April 23, 2016

JOLLIBEE Foods Corp. (JFC) is taking full ownership of the operator of chicken barbecue chain Mang Inasal with the latter’s founder selling out his remaining stake to the homegrown fast food giant for P2 billion.

The largest Asian food service company acquired the remaining 30% stake in Mang Inasal Philippines, Inc. owned by Injap Investments, Inc., Edgar “Injap” J. Sia II, and Ferdinand J. Sia, JFC said in a disclosure to the stock exchange on Friday.

The deal was in line with the terms of the shareholders’ agreement dated Nov. 22, 2010 when JFC purchased an initial 70% of the operator of Mang Inasal for P3 billion.

“This was a few years in the making. It wouldn’t contribute as much to Jollibee considering that the growth of Mang Inasal has stabilised already unlike in 2010,” Luis A. Limlingan, business development head at Regina Capital Development Corp., said in a mobile phone message on Friday.

The listed company said there will be no changes in the operations and direction of Mang Inasal following the transaction except that the board of directors of Mang Inasal be composed completely of representatives of JFC.

The business relationship between the Jollibee Group and Mr. Sia II, founder of Mang Inasal, will continue through DoubleDragon Properties Corp. -- a joint venture between Injap Investments and Honeystars Holdings Corp. of JFC Chairman Tony Tan Caktiong.

DoubleDragon is developing community malls nationwide under the brand CityMalls, with the JFC brands as the anchor tenants. The real estate developer is also building the Jollibee Tower office building, the units of which will be respectively owned by JFC and the property developer.

JFC operates the largest food service network in the Philippines with 2,493 outlets in the country as of March across the flagship Jollibee, Chowking, Greenwich, Red Ribbon, Mang Inasal and Burger King brands.

Overseas, it was operating 650 stores including Yonge King, Hong Zhuang Yuan, San Pin Wang, Dunkin’ Donuts and Jinja Bar. The JFC Group has a total of 3,143 stores worldwide.

Shares in JFC slid P2.60 or 1.15% to close at P223.40. -- Krista Angela M. Montealegre