Jollibee to buy Mang Inasal for P3 billion

(Updated: 9:42 p.m.) Fastfood giant Jollibee Foods Corp. on Monday said it is buying 70 percent of Mang Inasal Philippines Inc. — a Filipino food chain — for P3 billion. In a filing with the Philippine Stock Exchange, Jollibee Foods said it will pay Mang Inasal owner Edgar Injap Sia III of Injap Investments Inc. a P200 million downpayment. About 90 percent of the balance will be paid upon closing of the agreement, with the remaining 10 percent to be paid three years onward after the deal is reached, Jollibee Foods said. Injap will keep 30 percent equity in Mang Inasal, the disclosure read. The deal will be completed in 30 days, subject to due diligence by Isla Lipana & Co. and law firm Romulo Mabanta Buenaventura Sayoc and De Los Angeles, it added. The purchase of Mang Inasal will add 5 percent to the fastfood giant’s worldwide system sales and 7 percent to its profits, according to Jollibee Foods. It will also increase by 16 percent Jollibee Foods' worldwide store network. Like Jollibee, much of Mang Inasal’s success is due to chicken. The chain serves primarily grilled chicken and other Filipino food in 303 stores, 24 of which are company owned and the rest are franchised outlets. Mang Inasal has revenues of P2.6 billion and system-wide sales of P3.8 billion a year. Jollibee Foods, founded by businessman Tony Tan Caktiong, has 1,578 stores in the country and 375 abroad. Locally, the Jollibee brand has 703 stores, Chowking (404), Greenwich (218), Red Ribbon (215), Delifrance (23), and Manong Pepe’s (15). Overseas, Jollibee Foods has 185 Yonghe King stores in China, 64 Jollibee stores in the US, Vietnam and Brunei, 38 Red Ribbon stores in the US, 37 Chowkings mostly in the US, and 51 Hong Zhuang Yuan branches in China. — JE/VS, GMANews.TV