Universal Robina Corp. (URC) is ceding control of its instant-noodle joint venture to its Japanese partner as the company pivots to a minority role in the local segment.

In a disclosure to the Philippine Stock Exchange, URC announced that the food and beverage arm of the Gokongwei group entered into an agreement to sell a 21 percent equity stake in Nissin Universal Robina Corp. to Nissin Foods Asia Co. Ltd.

Upon completion of the transaction, the Japanese partner’s holding will increase to 70 percent from 49 percent, while URC’s stake will drop to 30 percent from its current majority of 51 percent.

The divestment involves the sale of 39.69 million shares. While URC did not immediately disclose the specific transaction price, the company noted that the valuation will be derived using a combination of discounted cash flow analysis—utilizing the Gordon Growth method for terminal value—and enterprise value-to-EBITDA multiples.

Based on the terms of the agreement, the final consideration is expected to be settled by December 2026, contingent on approval from the Philippine Competition Commission and other customary closing conditions.

The shift allows Nissin Foods Asia to take the lead in product innovation and brand management, leveraging its global expertise in the competitive noodles category. URC will pivot to a supporting role, maintaining its presence as the local operating partner.

The URC will remain responsible for day-to-day operations, utilizing its established distribution networks and market intelligence to maintain the brand’s footprint in Southeast Asia’s second-most populous nation.

The partnership dates back to 1994, during a period of rapid expansion for the local snack food industry. For decades, the joint venture has been a dominant force in the local market, where instant noodles remain a staple for millions of households.

Under the new structure, Nissin Foods Asia will consolidate the unit into its financial statements, while URC will account for its remaining interest using the equity method.

URC executives said the move was a refinement of the partnership, intended to accelerate the unit's development. The company assured investors that the change in financial presentation will not disrupt business operations.