JFC acquires remaining 30% stake in Happy Bee Foods Processing in China

Asian food service company Jollibee Foods (JFC) has secured governmental and regulatory approvals in China for the transfer of assets in Happy Bee Foods Processing in Anhui, China, through its wholly owned subsidiary Jollibee Worldwide (JWPL).

As part of the acquisition, JFC has transferred shares in Happy Bee Foods Processing (Happy Bee) in Singapore, to acquire a 100% stake of Happy Bee Foods Processing in Anhui Province in China.

Prior to the government approval, JWPL owned a 70% stake in Happy Bee, while its partner Hua Xia Harvest Holdings (Hua Xia) owned remaining 30% stake. Happy Bee owns 100% of Happy Bee Foods Processing in Anhui, China.

After being acquired by JFC, Happy Bee will no longer produce and sell food products to institutions other than JFC’s restaurant businesses.

As consideration for the acquisition‎ of the additional 30%, JFC has effectively conveyed to Hua Xia certain manufacturing facility assets worth $10.3m related to the production and sale of products for outside institutions.

The transaction is basically an asset for equity swap. JFC has minimal net cash outlay for this acquisition.

By acquiring a 30% stake, JFC has gained a 100% ownership of the food processing facility, which would support its Yonghe King business by further improving its food quality and increasing the assurance of its food safety.