Highlands Coffee founder repurchases controlling stake in deal valuing company at $800M

The Philippine-owned Jollibee Foods Corporation announced on Wednesday that its subsidiary JSF Investments has agreed to sell its stake in SF Vung Tau Jsc, the operator of the Highlands Coffee chain in Vietnam, to Viet Thai International Jsc. The Thai-controlled company will become the controlling shareholder, increasing its stake from 40% to 51%.

The transaction is part of Jollibee's portfolio management strategy to build businesses, expand their scale, and optimize ownership stakes once they are mature enough to attract outside capital. Jollibee expects to use the proceeds from the sale to reduce debt, reinvest in growth businesses, or return money to shareholders. After the deal, Jollibee will retain a 49% stake in Highlands Coffee.

The valuation of Highlands Coffee at around $800 million, significantly higher than the $25 million Jollibee paid for a 49% stake in 2012, reflects the company's strong performance. Highlands Coffee has expanded rapidly, becoming Vietnam's largest cafe chain with 1,062 outlets as of June. The brand generates over 8.6% of Jollibee's profits, making it a crucial asset for the corporation.

Jollibee's capital has played a significant role in Highlands Coffee's growth, and the company is now considering an initial public offering, expected in the first quarter of 2027.