Tony Tan Caktiong's Jollibee Foods Corporation Announces Withdrawal of Offer of Preferred Shares

Jollibee Foods Corporation (JFC), one of the largest food service companies in the world, announced that it is withdrawing its application to offer and list up to 8,000,000 preferred shares, which it filed with the Securities and Exchange Commission and The Philippine Stock Exchange, Inc. in June 2024, and as publicly disclosed in its Preliminary Offer Supplement dated June 27, 2024, as posted on its website.

JFC Chief Financial Officer, Richard Shin said, “Following careful consideration of all relevant factors and in the interest of achieving the best value for our shareholders, we have made the decision to withdraw our previously announced public offering of Series C Preferred Shares. We will explore other capital raising opportunities, focused on shareholder value and optimization of our capital structure.”

The proceeds from the Series C Preferred Shares were earmarked for refinancing of JFC’s Series A Preferred Shares. However, JFC believes that the additional funding that would have come from the public offer of the Series C Preferred Shares would no longer be needed for the refinancing of the Series A Preferred Shares due primarily to the strong profit performance and cash flow generation of its Philippine business. Other factors considered by JFC in its decision to withdraw its public offering of the Series C Preferred Shares are: (i) its plan to reduce its Php23 billion CAPEX budget for 2024 by at least 20%; (ii) rate cuts expected to occur later in the year would allow JFC to obtain more beneficial bank loans at floating interest rates; and finally, (iii) the profit[1]accretive contribution from the consolidation of Compose Coffee. JFC expects these factors and considerations will improve its flexibility in its funding and in increasing its leverage position.
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As a result of the withdrawal, no Series C Preferred Shares will be offered or sold by JFC.