Jollibee spin-off faces market concerns

Jollibee Foods Corp.'s (JFC) ambitious plan to spin off its international business and list it on a United States (US) stock exchange is facing pushback from Philippine market regulators and analysts, who warn that local investors may end up holding shares they cannot easily trade.

- By JAMES A. LOYOLA

The homegrown fast-food giant, famous for its fried chicken and aggressive global acquisitions, announced last week that it intends to distribute shares of its international subsidiary as a property dividend to existing shareholders.

However, Philippine Stock Exchange (PSE) President Ramon S. Monzon expressed concern over the practicalities of the move, noting that the local exchange lacks the infrastructure to support seamless cross-border trading for retail investors.

"This is what I do not understand. If you're a Jollibee shareholder, you're going to get a share in JFC International. But what will you do with that share? How will you sell it?" asked Monzon.