Jollibee sells 11 per cent stake in Highlands Coffee for $88 million

September 24, 2026 | 17:57

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After more than a decade of holding a controlling stake in the Vietnamese coffee chain, Philippine food and beverage group Jollibee Foods Corporation (JFC) is set to reduce its ownership to below 50 per cent after selling an 11 per cent stake in Highlands Coffee.

On September 23, JFC said its subsidiary JSF Investments had signed an agreement to sell an 11 per cent stake in SF Vung Tau (SFVT) to Vietnam-based Viet Thai International (VTI). SFVT holds the Highlands Coffee business in Vietnam.

VTI is a founding shareholder of Highlands Coffee. The company was established by David Thai, founder and CEO of Highlands Coffee, in 1998.

Photo: Le Toan

The transaction is valued at approximately $88 million, subject to adjustments. JFC said the deal was part of its portfolio management strategy, which includes building businesses, scaling them up, and optimising ownership levels as they mature and become able to attract external capital.

JFC expects to use the $88 million proceeds to reduce debt, reinvest in growth areas, or return capital to shareholders.

Under the agreement, JFC will transfer 1,460,938 shares at $64 each. Jollibee said the transaction price was determined using a multiple-based valuation approach, together with standard valuation methods, normalised earnings before interest, taxes, depreciation, and amortisation (EBITDA), and the company’s growth outlook.

Jollibee invested in Highlands Coffee in 2012, paying $25 million for a 49 per cent stake in VTI’s Vietnam business and a 60 per cent stake in its Hong Kong operations. However, David Thai has said that he remains responsible for operations and human resources management.

“Jollibee only works alongside us as an investor and strategic adviser, and does not participate in business operations,” Thai said at a press conference in April.

With Jollibee’s support, Highlands Coffee has expanded rapidly to become Vietnam’s largest coffee chain. As of the end of June, the brand had 1,062 outlets in Vietnam and overseas, including company-operated and franchised stores.

In the second quarter, Highlands Coffee’s EBITDA exceeded 1 billion pesos, equivalent to $15.9 million, up more than 70 per cent on-year and its highest level on record.

The brand is playing an increasingly important role for Jollibee, ranking second only to Coffee Bean & Tea Leaf in terms of profit contribution and accounting for more than 8.6 per cent of the group’s EBITDA.

Alongside its network expansion, Highlands Coffee is considering an initial public offering, tentatively planned for the first quarter of 2027. The offering is expected to provide additional resources for its next phase of growth and strengthen the coffee chain’s brand.