Jollibee sells 11 per cent stake in Highlands Coffee for 88 million

On September 23, JFC announced that its subsidiary JSF Investments had sold an 11 percent stake in SF Vung Tau (SFVT) to Vietnamese company Viet Thai International (VTI). SFVT manages the Highlands Coffee business in Vietnam. VTI is one of Highlands Coffee's founding shareholders, established by David Thai in 1998. The transaction is worth about $88 million, subject to minor adjustments.

JFC stated that this move aligns with its strategy of managing its portfolio by building, scaling, and optimizing business ownership levels as they mature and become eligible for external capital. The company plans to utilize the $88 million proceeds to pay down debt, invest in future growth areas, or return capital to shareholders.

The deal involves JFC transferring 1,460,938 shares at $64 each. Jollibee acquired a 49 percent stake in VTI's Vietnam business and a 60 percent stake in its Hong Kong operations in 2012, paying $25 million for the shares. David Thai, the founder and CEO of Highlands Coffee, clarified that Jollibee merely acts as an investor and strategic advisor, not participating in business operations.

Highlands Coffee has expanded rapidly across Vietnam and overseas, boasting 1,062 outlets as of June. The brand's EBITDA exceeded 1 billion pesos ($15.9 million) in the second quarter, marking a more than 70 percent year-on-year increase and the highest level ever recorded. Highlands Coffee is considering an initial public offering, tentatively scheduled for the first quarter of 2027, which could provide additional resources for growth and strengthen the coffee chain's brand.