Philippines’ Jollibee to cede Highlands Coffee control to Vietnamese shareholder

Jollibee Foods Corporation said on Wednesday that its wholly owned subsidiary JSF Investments Pte. Ltd. had signed an agreement to sell nearly 1.5 million shares in SF Vung Tau Joint Stock Company to Viet Thai International.

SF Vung Tau Joint Stock Company is the legal entity that operates Highlands Coffee’s business in Vietnam.

The transaction is valued at US$88 million, excluding adjustments. Based on the deal price, Highlands Coffee’s equity value is estimated at $800 million.

Vietnamese partner to take control of Highlands Coffee

Once the transaction is completed, Jollibee’s stake in SF Vung Tau Joint Stock Company will fall from 60 percent to 49 percent, while Viet Thai International’s ownership will rise from 40 percent to 51 percent, making it the controlling shareholder.

The deal remains subject to certain closing conditions, including the necessary regulatory and shareholder approvals.

Viet Thai International was founded by David Thai in 1998. He is a founding shareholder of Highlands Coffee and remains its CEO.

Jollibee said that although it will no longer control Highlands Coffee, it will retain a 49-percent stake and continue to benefit from the chain’s growth.

The approximately $88 million in proceeds are expected to be used to reduce debt, reinvest in other growth businesses, and make distributions to shareholders.

The transaction comes as Highlands Coffee has expanded significantly since Jollibee began investing in the business in 2012, when the chain had only 56 stores.

At the end of 2025, Highlands Coffee had 985 stores, including 947 in Vietnam and 38 in the Philippines.

By June 2026, the chain had reached 1,000 stores. 

In the second quarter of 2026, systemwide sales rose 46.7 percent year on year, while same-store sales in Vietnam increased 11.5 percent.

Highlands’ second-quarter EBITDA (earnings before interest, taxes, depreciation and amortization) reached around 1.03 billion pesos ($17 million), up 70 percent year on year.

In the first half of 2026, the coffee chain’s EBITDA exceeded 1.7 billion pesos ($28 million), a 39-percent increase.

In 2025, Highlands Coffee’ EBITDA stood at 2.48 billion pesos ($39.5 million), up six percent. 

The chain serves more than 100 million customer visits a year.

Highlands Coffee plans IPO in Vietnam

The transfer of control to Viet Thai International comes as Highlands Coffee prepares for an initial public offering (IPO) and listing in Vietnam.

In March 2026, Jollibee said the Highlands Coffee board was considering an independent IPO in Vietnam, with a target of completing the offering in the first quarter of 2027.

According to Jollibee, the plan would give Highlands Coffee direct access to the capital market and provide resources for its next phase of growth.

Bloomberg previously reported, citing sources, that Highlands Coffee could raise around $300 million to $400 million in its Vietnam IPO.

Highlands Coffee was founded by David Thai in 1999.

In 2012, Jollibee Foods Corporation invested $25 million to acquire a 49-percent stake in Highlands Coffee’s Vietnam business and a 60-percent stake in its Hong Kong business.

Thai has recently told the media that Highlands Coffee remains a Vietnamese coffee brand.