With the Philippine-based company continuing to have board representation and “participation in future value creation.”
On Wednesday, September 23, Jollibee Foods Corporation (JFC) announcrd that its wholly owned subsidiary JSF Investments Pte. Ltd. has signed an agreement to sell its stake in the Highlands Coffee business in Vietnam tl Viet Thai International Joint Stock Company (VTI).
VTI was established in 1998 by David Thai amd is one of Vietnam’s largest consumer marketing and multi-unit retail operators. It is the founding shareholder of Highlands Coffee and the JFC’s joint venture partner in Vietnam since 2011.
Thai also continues to serve as Chief Executive Officer of Highlands Coffee, and by the completion of this transaction, VTI will hold a controlling interest in the platform.
Prior to the deal worth VND 2.3 trillion (approximately USD 88 million), VTI held a 40% interest in Highlands Coffee, with the said transaction pushing that to 51%. On the other hand, JFC will see its stake reduced to 49%.
JFC noted that it is cash transaction, payable over an agreed payment period following completion, with an upward adjustment linked to the value of the shares over that period, subject to an agreed cap.
The transaction values the Vietnam coffee chain, which was established in 1999 and has grown into a network of 985 stores both in its home country and abroad (including the Philippines) as of FY 2025, at USD 800 million.
Meanwhile, the Jollibee Group will retain board representation in Highlands Coffee, which will include minority protections under the shareholders’ arrangements.
Meanwhile, in a statement, JFC said that it part of its approach to portfolio management that includes building a business, scaling it, and optimizing ownership once it is mature enough to attract external capital at attractive valuation.
Highlands Coffee’s management team, brand direction, store operations, franchisee relationships, employees, and customer-facing experience are all said to remain unchanged following the transaction.
“Vietnam is one of the Group’s most developed coffee markets, and Highlands Coffee is one of its largest international brands by store count, which makes it the natural first platform to price externally. Pricing Highlands Coffee independently gives the Jollibee Group an arm’s-length, tangible value to carry into the intended listing of its international business,” it stated.
Ernesto Tanmantiong, President and Chief Executive Officer of Jollibee Foods Corporation doubled down on that and noted: “Vietnam is where we proved the Jollibee Group model can succeed internationally.”
“Together with our partner, we transformed Highlands Coffee from a little over 50 stores at the time of our initial investment into a category leader with more than 1,000 stores today,” he said.
The executive also said that the transaction establishes an independent value for that work, on top of deepening Vietnamese ownership of tje Vietnamese brand.
“Highlands Coffee will continue to open stores, invest in its people, and grow, with the partner who founded it holding a larger share of what comes next,” he furthered.
For his part, Richard Shin, Global Chief Financial and Risk Officer, and Chief Executive Officer of JFC International at Jollibee Foods Corporation, stressed: “Our capital allocation discipline is about visible, measurable value.”
Meanwhile, David Thai, who is the Founder and CEO of Highlands Coffee, said: “Highlands Coffee has grown into one of Vietnam’s most recognized and loved consumer brands by staying close to Vietnamese consumers and playing a meaningful role in everyday coffee culture.”
“With JFC’s continued partnership and Viet Thai International taking on a deeper leadership role, we are entering an important new chapter one focused on strengthening Highlands Coffee for long-term growth while staying true to our Vietnamese roots and the customer connection and coffee experience that have defined the brand from the beginning,” he added.
According to JFC, proceeds of the sale will go to debt reduction, reinvestment in other high-growth platforms, and shareholder returns that are all consistent with their stated capital allocation priorities.
