Jollibee Bares Titan Buy Details

Jollibee Foods Corporation (JFC), one of Asia’s largest Asian food service companies disclosed today that its wholly-owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) announced amendments to the Limited Partnership Agreement for Titan Dining LP (“Titan”), the private equity fund which ultimately owns the Tim Ho Wan brand and company-owned Tim Ho Wan stores.

Photo Insert: A Tim Ho Wan store in Sydney

As part of the amendment, the fund size of Titan will increase from its current S$200,000,000 to S$250,000,000, to fund working capital requirements of Tim Ho Wan as well as facilitate the completion of other projects.

Titan will also have additional investors, who will be taking up a 10% participating interest in Titan. With the increase in fund size and entry of additional investors, JWPL’s total commitment to the fund shall amount to S$225,000,000 comprising 90% of the increased fund size and total commitments.

JFC invested SGD45 million in Titan in May 2018 to own a 45% participating interest in Titan Dining which was the master franchisee of Tim Ho Wan in the Asia Pacific region.

JFC stated at that time that by investing in the fund, it would have the opportunity to acquire substantial ownership of Tim Ho Wan’s master franchisee in the Asia Pacific region through a purchase mechanism provided for in the investment agreement. To prepare for this eventuality,

JFC will open a franchise operation of Tim Ho Wan in Shanghai, People’s Republic of China (PRC). In October 2019, JFC disclosed that JWPL’s capital commitment to Titan increased from SGD45 million to SGD120 million, its participating interest increased to 60% and the fund size of Titan increased from SGD100 million to SGD200 million.

Titan Dining also expanded its assets by acquiring at about this time the Tim Ho Wan brand and trademarks. In October 2020, JFC’s participating interest in the Titan fund increased further from 60% to 85% after JWPL purchased the 25% participating interest of another investor in the fund for a total consideration of SGD36.3 million.

In August 2021, JFC purchased the remaining 15% of other investors in Titan. JFC through a joint venture with Titan Dining opened a Tim Ho Wan restaurant in Shanghai and operates three THW outlets in Shanghai.

JFC plans to aggressively expand Tim Ho Wan in Mainland China with a target of reaching 100 restaurant outlets within the next four years. Tim Ho Wan operates a total of 53 outlets in Asia, mostly franchised stores with the largest concentration in Singapore (12), Taiwan (12), Philippines (7), and Hong Kong (6).

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