Fast food service giant Jollibee Foods Corp (JFC) is confirmed the full ownership of Happy Bee Foods Processing Pte Ltd after it has secured government and regulatory approval in China to buy out its joint venture partner. Its wholly-owned subsidiary, Jollibee Worldwide Pte Ltd (JWL) acquired the remaining 30 percent stake in the China-based food manufacturer Hua Xia Harvest Holdings Pte Ltd., through an equity-and-asset swap deal valued at US$10.4 million.
This move lies in line with the Asian firm’s target as it seeks to rival McDonald to become one of the world’s top 10 fast food brand. Looking at its present oversea growth, the Asian food company has a total operation of 22 commissaries worldwide, that is 15 in the Phillippines, three in China and the United States as well as one in Vietnam. In a statement, the company said that it would continue to pursue an aggressive drive to buy more overseas companies with ticket sizes up to US$100 million.
This acquisition frenzy has begun in 1994 when it first acquired 80% of Greenwich Pizza in the Philippines. Since then, the Filipino fast food chain has more than 10 companies under its belt with its latest acquisition, prior to this, happening late last year at a 40 percent stake in US-based brand Smashburger Master LLC for US$99 million.
But aside from its ambitious appetite, another reason behind this partnership is so that Happy Bee can solely support the continued growth of its flagship restaurant Yonghe King in China, which is one of JFC’s largest business in China with a total of 316 stores which contributes 8 per cent to JFC’s worldwide system-wide sales.
“The objectives behind the acquisition of the 30 per cent ownership of Happy Bee which gave JFC 100 per cent ownership of the food processing facility are to enable JFC to concentrate on supporting the growth of its Yonghe King business and on further improving its food quality and increasing the assurance of its food safety,” says Jollibee’s Vice President Valerie Amante.
Henceforth, with this change in ownership, Happy Bee will no longer produce and sell food products to institutions other than JFC’s restaurant businesses. It is noted that the transaction is basically an asset for equity swap, with Hua Xia selling its 3,518,018 shares in Happy Bee priced at $2.96 per share. The transfer of shares and assets are expected to be completed within 2016.
On another note, JFC added that it is also exploring a joint venture possibility with ISE Foods Inc, a Japanese firm for an egg production facility in the Philippines.
For more information, please visit http://www.jollibee.com.ph/
By Vivian Foo, Unicorn Media
Malaysian Global Innovation and Creativity Centre (MaGIC), ride-hailing app Uber and Telecom operator Digi have initiated an ideation lab whereby 20 startups throughout Southeast Asia will be groomed to be investment-ready and this does not require any equity from the participants. A few selected ones will also proceed to the next round and be given the chance to meet early stage investors.
The program is a six-day initiative known as “ASEAN’s Next Great Idea” which will conclude on November 30. Mentors at the MaGIC include Chelsey Lepage, Innovation Lead at UNICEF, Prashant Pathmanaban, Head of Technology at Google and Michael Octoman, Partner at Navis Capital, among others.
“During the program, the top 20 startups – shortlisted from a pool of 417 applicants – will learn how to develop three key aspects of their future business which are their customer, product, and market,” MaGIC said in an announcement on Tuesday.
Additionally, the lab will also provide participants with direct access to the best resources in the ecosystem: MaGIC’s expertise in building entrepreneurs, Uber’s real world experiences, and Digi Incub8’s strength in startup strategy. All these will help the entrepreneurs to fine-tune their ideas or concepts and create a working prototype, preparing them for the next stage of seed investment and funding.
Following this, the top 10 participants will present their refined business ideas to key executives from MaGIC, Uber, and Digi at the Global Entrepreneurship Community event on December 8 in Kuala Lumpur. Furthermore, qualified ideas will have the opportunity to meet early stage investors and key players within the entrepreneurship ecosystem in San Francisco, as well as a visit to Uber’s Silicon Valley headquarters.
“I hope with programs such as ASEAN’s Next Great Idea lab, more and more individuals are encouraged to come forward with their ideas and develop them further. The emergence of new ideas is what keeps our entrepreneurship ecosystem growing,” said MaGIC CEO Ashran Dato’ Ghazi.
With this, ASEAN’s startup ecosystem will continue to thrive with ideas that can dramatically shape people’s digital lifestyles with their smart devices. While the role MaGIC plays is through instilling an entrepreneurial mindset where solving a problem is at the heart of any startup.
“The ambition now is to help translate the growth potential of these ideas and startups into creating long-term, sustainable businesses,” Digi’s Chief Digital Officer, Praveen Rajan added.
For more information, please visit http://mymagic.my/en/
By Vivian Foo, Unicorn Media