SHARES of Jollibee Foods climbed more than 5 per cent on Thursday (Feb 13) after the Philippines’ top restaurant operator said it has secured the bourse’s approval to remove a 40 per cent cap on foreign ownership of the company.
The stock rose as much as 5.4 per cent, leading gainers among large-cap Philippine stocks and outpacing the benchmark index.
The fast food chain, known for dishes such as fried chicken and sweet spaghetti, said earlier on Thursday that the Philippine Stock Exchange has approved its request to scrap a 40 per cent foreign ownership cap. The company said it’s in line with changes in its articles of incorporation that removes its ability to own, acquire or mortgage land.
“This could make the stock more attractive for foreign funds who were previously concerned about the ownership limit,” Francis Subido, said senior analyst at the Philippine National Bank. It also positions the company for future inclusion with investment indices such as MSCI, which consider foreign ownership as a factor, he added.
In May last year, the company’s board amended its articles of incorporation, removing the ability to directly own real properties, but still retaining the ability to invest in property firms. BLOOMBERG
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