SINGAPORE: Asia Pacific Breweries acquires control of Solomon Breweries
Asia Pacific Breweries buys Solomon Breweries
Asia Pacific Breweries has acquired around 98% of Solomon Breweries for approximately SGD21.5m (US$17.5m).
The Heineken and Fraser & Neave-owned brewer announced today (6 June) that it has built up a 97.69% stake in Solomon Breweries. The deal gives it beer market leadership in the Solomon Islands, where Solomon Breweries is the only brewer.
Last month, Asia Pacific Breweries (APB) announced that it had agreed to purchase 93.4% of Solomon Breweries from a variety of shareholders, including Denmark's Royal Unibrew. APB subsequently launched an offer for all outstanding shares in the group.
The Tiger beer brewer has been more aggressive in its acquisition strategy over the past 18 months, having also acquired Heineken's controlling stakes in Multi Bintang of Indonesia and Grand Brasseries de Nouvelle Caledonie.
"Solomon Breweries has a good track record of market leadership and profitable growth and will be immediately accretive to APB's earnings," said APB's CEO, Roland Pirmez.
Per capita beer consumption in the Solomon Islands is 12 litres, according to APB.
"Apart from an enhanced earnings base, there are regional synergies in cost management and commercial excellence that could be achieved with our operations in neighbouring Papua New Guinea and New Caledonia,” added Pirmez.
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