Jollibee 'no comment' on potential Highlands Coffee stake sale
Jollibee [JFC 237.0 3.9%] [link] didn’t correct any of the reported details of a potential stake JFC’s Highlands Coffee chain in Vietnam.
The article said, according to “sources”, that JFC was in “advanced discussions” to sell between 10 and 15% of Highlands Coffee at a US $800 million enterprise valuation.
The article’s sources said that if the stake sale were successful, that might encourage JFC to push forward with an IPO for Highland Coffee that it has been considering for “many years”.
In its response, JFC said that it does not comment on “possible transactions”, and that it will only discuss transactions that have been completed and disclosed.
MB BOTTOM-LINE
The reason the stake sale is important to a potential IPO is that it demonstrates to banks and institutional investors that a sophisticated, non-related party was willing to purchase shares in Highland Coffee at a tasty valuation for JFC.
That’s the key: for JFC, a “successful” stake sale is one that pegs a high-enough valuation to make the prospect enticing to sell even more shares to the public through a subsequent IPO.
That’s a pretty hefty return for Jollibee, which purchased 50% of Highlands Coffee in 2011 for just $25 million.
JFC’s stock increased “only” 163% during the same time period.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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