Jollibee Foods Corporation (JFC) announced on Sept. 23 that it had reached an agreement to divest part of its stake in Highlands Coffee.

The buyer is Viet Thai International Joint Stock Company (VTI), led by David Thai, the founder and CEO of Highlands Coffee.

Through its subsidiary JSF Investments Pte. Ltd., Jollibee agreed to sell more than 1.46 million shares, equivalent to an 11% stake, in SF Vung Tau Joint Stock Company (SFVT), the entity that holds Highlands Coffee’s business operations in Vietnam.

The transaction is valued at $88 million, subject to certain adjustments.

Once completed, Jollibee’s ownership in the coffee chain will fall from 60% to 49%, while VTI’s stake will increase from 40% to 51%, returning majority control to the Vietnamese shareholder after more than a decade under Jollibee’s control.

The transaction values Highlands Coffee’s equity at about $800 million.

Jollibee said the valuation represents a significant premium to the book value of its investment. The Philippine group plans to use the $88 million in proceeds to reduce debt, reinvest in new growth platforms and return capital to shareholders.

Jollibee’s involvement with Highlands Coffee dates back to 2011-2012, when the Philippine company invested $25 million to acquire nearly half of the Vietnamese business and a majority stake in its Hong Kong operations.

Jollibee subsequently increased its ownership to 60%, giving it control of the business.

Starbucks had previously made an offer to acquire Highlands Coffee in 2012, but the deal did not materialize.

After more than a decade of partnership, VTI’s move to raise its ownership to 51% will return majority control of Highlands Coffee to its Vietnamese shareholder.

The transaction also comes ahead of the coffee chain’s planned initial public offering, which is expected to be completed in the first quarter of 2027 with a target of raising $300-$400 million.

Jollibee has appointed Morgan Stanley and Ho Chi Minh City Securities Corporation (HSC) as financial advisers for the planned IPO.

Highlands Coffee has continued to expand rapidly.

By the end of the second quarter of 2026, the chain had around 1,062 stores, up sharply from 763 at the end of 2024. It serves more than 100 million customers annually and employs more than 10,000 people.

The transfer of the 11% stake remains subject to final regulatory approvals before completion.

Manh Ha