SINGAPORE: APB NZ subsidiary in joint venture
Asia Pacific Breweries' (APB) wholly-owned subsidiary in New Zealand, DB Breweries, has announced the incorporation of two new joint venture companies - Barworks Group and Sale Street Brewery.
Barworks is a partnership between DB and JAG Hospitality, a leading New Zealand bar operator. DB will inject approximately NZ$2.5m (US$2.65m) for a 60% stake in Barworks while JAG will invest NZ$1.7m for a 40% share in the company.
For its 60% stake in Sale Street Brewery, DB is investing NZ$528,000 while its partner, Curdall Investments will pump in NZ$352,000 for a 40% shareholding in the bar and microbrewery on-premise outlet in Auckland.
"DB's investment in Barworks and Sale Street Brewery underlines its commitment to generate more value from its business by diversifying its revenue streams in the mature beer market of New Zealand," said Les Buckley, APB's regional director for Oceania, today (22 May).
The moves are marked as strategic in further driving the volume of DB's beer brands including Heineken, Monteith's, DB Draught, Export Gold and Tiger amongst others.
As a result of the move, DB will be able to receive a share of profits from all sales within the on-premise outlets, including those for food and other beverages.
At the initial stage, Barworks will acquire a 100% stake in Portumna, BOF, Barneydale and Tarmon, and a 75% stake in Studio 25, George Corporation and Clifford Pubs.
DB has four breweries in New Zealand. For the six months to the end of March, the company reported revenue and PBIT of $251.2m and $37.7m respectively.
The investments are not expected to have any material impact on the net tangible assets per share or earnings per share of APB for the current financial year, the company said.
APB is a joint venture between Heineken and Fraser & Neave.
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