Philippines fast-food giant Jollibee in talks to sell stake in Vietnam coffee chain

SINGAPORE Jollibee Foods Corp, the biggest fast-food operator in the Philippines, is in advanced talks to sell a minority stake in the Vietnamese coffee chain Highlands Coffee, two sources with knowledge of the matter told Reuters.

One of the sources said that Jollibee, controlled by Philippine billionaire Tony Tan Caktiong, is considering a sale that could value the fast growing coffee chain at around $800 million.

The source said the group is looking to sell 10 per cent to 15 per cent of its stake in Highlands Coffee to an investor.

Jollibee didn't want to say anything. Jollibee bought a small stake in Highlands Coffee a decade ago, and then took a controlling interest. Highlands Coffee, founded in 1999, began as a coffee products packager in Hanoi and has since grown to become a chain with more than 500 stores in Vietnam and the Philippines.

The stake sale, if successful, could pave the way for an IPO of Highlands Coffee, a move that Jollibee has been considering for a long time.

The government said last month that Vietnam, with a population of 99 million, is Asia's fastest growing economy with gross domestic product expected to expand 8 per cent this year and 6.5 per cent next year.

A boom in coffee drinking has resulted in big domestic brands in Southeast Asia. In a funding exercise last year, Indonesian coffee chain Kopi Kenangan was valued at more than $1 billion.

Jollibee operates the largest food service network in the Philippines with more than 1,500 stores in 17 countries, including the U.S. brand Coffee Bean Tea Leaf and its own fast-food chain with the ubiquitous smiling bee logo.