Jollibee subsidiary launches tender offer for Singapore listed securities

Iris Gonzales - The Philippine Star

MANILA, Philippines — Jollibee Foods Corp. (JFC), the listed Asian food conglomerate chaired by Tony Tan Caktiong, has launched a tender offer for up to $250 million worth of securities listed in Singapore.

JFC, through its wholly-owned subsidiary, Jollibee Worldwide Pte. Ltd. (JWPL) commenced the offer to purchase for cash up to $250 million out of $600 million guaranteed senior perpetual securities issued in January 2020 and listed on the Singapore Exchange Securities Trading.

With this, JFC hopes to reduce its debts by the end of the year.

“The tender offer is part of JFC’s liability management strategy to strengthen its balance sheet,” JFC said in a disclosure yesterday.

The tender offer, launched on Oct. 4, will expire on Nov. 3, 2021 unless extended or terminated by JWPL ahead of schedule.

It is conditioned on the settlement and listing of up to 12 million cumulative, non-voting, non-participating, non-convertible, redeemable, peso-denominated perpetual preferred shares concurrently being offered by JFC.

A portion of the proceeds of the preferred shares will be used to partially buy back JWPL’s guaranteed senior perpetual capital securities, by virtue of a loan that JFC will extend to JWPL to partially fund the tender offer.

Once the issuance of the preferred shares and the partial buyback of the guaranteed senior perpetual capital securities are completed, along with other actions related to financing and financial management, by December 2021, JFC expects to have fewer debt obligations, more distributed financial maturities over the next few years, lower foreign exchange risks, and better leverage and debt servicing ratios.

JFC said this is expected to support its growth in the coming years as it aims to become one of the top five restaurant companies in the world.

“All these actions will support JFC in maintaining its capability to finance its profitable growth, which is forecasted to accelerate in the next few months and years as the JFC Group plans to accelerate its worldwide store expansion in 2022 and onward,” the fastfood giant said.

At present, JFC operates in 33 countries, with over 5,800 stores globally with branches in the Philippines, United States, Canada, the People’s Republic of China, United Kingdom, Italy, Vietnam, Brunei, Singapore, Saudi Arabia, United Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Indonesia, Costa Rica, Egypt, Panama, Malaysia, South Korea, Japan, and India.

It has been on an aggressive expansion mode, recently opening in Spain in Europe, North America and in the US.

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