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13h ago

Jollibee to Spin Off Overseas Business, Target US Listing by Late 2027

Management pitches clearer equity stories that separate faster-growing overseas operations from cash-generative Philippine earnings.

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Customers dine in a branch of Jollibee in Manila, Philippines, August 23, 2019. Picture taken August 23, 2019. REUTERS/Eloisa Lopez/File Photo
Jollibee said the splitting of its two business arms will sharpen the strategic focus of each, allowing investors to differentiate between its “stable, cash-generative Philippine business” and their “higher-growth but more volatile international operations”.
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Overview

  • The new Jollibee Foods Corporation International will house all businesses outside the Philippines.
  • The Philippine operations will remain listed on the Philippine Stock Exchange, with existing holders set to receive one share in the international entity for each current share at the time of listing.
  • Jollibee said it has engaged international and local advisers to execute the spin-off and potential US listing.
  • After a one-hour trading halt, shares closed up 14.5% on Tuesday, the biggest single-day gain since 2008 and the session’s top gainer in the local index.
  • Analysts say the separation allows markets to value the stable domestic unit apart from higher-growth, more volatile international operations, reflecting Jollibee’s broader global push.