Restaurant chain operator Jollibee Foods Corp. said Tuesday it is increasing the fund size of Titan Dining LP to S$250 million (P9.36 billion) from S$200 million (P7.48 billion) to fund the expansion of Tim Ho Wan brand.
Titan, the private equity fund that ultimately owns the Tim Ho Wan brand and company-owned Tim Ho Wan stores, is 100-percent owned by Jollibee’s wholly-owned unit Jollibee Worldwide Pte. Ltd.
Jollibee said in a disclosure to the stock exchange it would use the bigger fund size to finance the working capital requirements of Tim Ho Wan and facilitate the completion of other projects.
The increase in fund size will also facilitate the entry of additional investors who will be taking up a 10-percent participating interest.
JWPL’s total commitment to the fund would reached S$225 million (P8.4 billion), comprising 90 percent of the higher fund size and total commitments.
Jollibee said it would aggressively expand Tim Ho Wan in China, with a target of reaching 100 outlets within the next four years.
Tim Ho Wan operates 53 stores in Asia, mostly franchised outlets with the largest concentration in Singapore, Taiwan, the Philippines and Hong Kong.
“JFC aims to build as an important part of its portfolio a significant business serving Chinese cuisine in different parts of the world,” it said.
JFC has five brands serving Chinese cuisines, including Chowking, Yonghe King, Hong Zhuang Yuan, Panda Express and Tim Ho Wan.
Jollibee initially invested S$45 million in Titan in 2018, with the acquisition of a 45-percent stake in the company. The deal came with an option for the Jollibee to eventually acquire a substantial ownership of Tim Ho Wan’s master franchise in the Asia Pacific region through a purchase mechanism provided for in the investment agreement.
It has then taken full ownership of Titan by buying out the remaining shareholders.
Jollibee is one of Asia’s largest food service companies with a worldwide network of 5,853 stores with 17 brands operating in 34 countries.
The share price of Jollibee fell 2.6 percent Tuesday to P229.