BIZ BUZZ: A fresh shot for Jollibee’s listing plan
The partial exit of Jollibee Foods Corp. (JFC) from Highlands Coffee may provide more than additional cash. It could also strengthen the valuation story for the fast-food giant’s planned Hong Kong listing.
COL Financial chief equity strategist April Lynn Tan views Jollibee’s sale of an 11-percent stake in Highlands to joint venture partner Viet Thai International positively.
The transaction will bring in about $88 million, which Jollibee may use to reduce debt, fund expansion or improve shareholder returns.
More importantly, the deal values the Vietnamese coffee chain at around $800 million.
That gives investors an arm’s-length benchmark for Highlands ahead of the proposed listing of JFC International, which will hold the group’s international businesses.
Once the transaction is completed, Jollibee’s stake in Highlands will decline to 49 percent from 60 percent. Viet Thai will raise its ownership to 51 percent and take control.
Jollibee will, therefore, retain exposure to nearly half of a business carrying an implied equity value of $800 million.
The valuation boost comes as the company’s profitability improves.
Tan raised her operating income forecasts by 15.7 percent to P21.5 billion for 2026 and by 15.9 percent to P23.7 billion for 2027.
She also increased her fair value estimate for Jollibee to P228 per share.
For investors, Highlands may have just served up the price tag Jollibee needs before taking its international business to Hong Kong.
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