URC cedes noodle JV control to Nissin

Universal Robina Corp. (URC) will sell a 21 percent stake in its instant noodle joint venture, Nissin Universal Robina Corporation (NURC), to partner Nissin Foods Asia Co., Ltd. (NFA), giving the Japanese firm a 70 percent controlling interest. URC’s ownership will drop to 30 percent.

In a disclosure on Friday, the Gokongwei-led company said the transaction covers 39.69 million shares of NURC, with completion targeted for 7 January 2027, subject to regulatory approvals, including the Philippine Competition Commission.

“URC and NFA are refining the partnership to further accelerate NURC’s development,” URC said. “In recognition of NFA’s global strengths in product innovation and brand-building in the noodles category, NFA will assume an enhanced leadership role in these areas.”

URC still local Philippine partner

URC added that it will remain the local operating partner in the Philippines, “remaining deeply involved in day-to-day operations and contributing its market knowledge, strong route-to-market capabilities, and execution excellence to sustain and enhance NURC’s competitive position.”

The sale price has yet to be finalized and will be determined using a discounted cash flow valuation with terminal value based on the Gordon Growth method and enterprise value-to-EBITDA multiples, the company said.

Manufactures and sells instant noodles

Established in 1994, NURC currently manufactures and sells instant noodles in the Philippines, with URC holding 51 percent and NFA 49 percent.

After the deal, NFA will consolidate NURC in its financial statements, while URC will account for its remaining stake using the equity method.

URC said the reporting change “does not affect the business operation and is expected to continue without disruption during and after the transition.”