Jollibee raising up to P8B from preferred share sale
Tycoon Tony Tan Caktiong’s fast-food giant Jollibee Foods Corp. (JFC) is strengthening its balance sheet with plans to raise up to P8 billion from selling preferred shares mainly to refinance maturing obligations.
In a stock exchange filing on Monday, Jollibee said its board approved plans to sell between 5 million and 8 million prefer shares at P1,000 each.
“JFC is undertaking this funding transaction to maintain strong capital structure, robust leverage position, and optimize liquidity by managing maturities of financial obligations,” the company said.
“A portion of the net proceeds from the offering will be used to refinance financial obligations including JFC’s callable Series A preferred shares which are due in October 2024 and for other general business purposes,” it added.Holders of preferred shares are given priority rights when paying out dividends and during events of corporate liquidation. Also, the company said the shares will be listed on the Philippine Stock Exchange and are peso-denominated, cumulative, nonvoting, nonparticipating, nonconvertible, redeemable.
The second tranche will come from the reclassification of the existing authorized and unissued common shares of JFC. The company’s existing cash dividend policy to holders of common shares will also not be affected.Further, the second-tranche preferred shares offering will be jointly underwritten by BPI Capital Corp., Chinabank Capital Corp. and BDO Capital.
Jollibee Group, one of the region’s largest fast-food groups, has over 6,880 stores across 18 brands in 33 countries. Its largest brands by store outlets worldwide are Jollibee with 1,660; CBTL, 1,164; Highlands Coffee, 779; Chowking, 613; and Mang Inasal. 573.
