CHINA: Asia Pacific Breweries drops Jiangsu DaFuHao Breweries holding, at last
Asia Pacific Breweries had hoped to sell its stake in Jiangsu DaFuHao back in 2008
Asia Pacific Breweries (APB) has finally succeeded in offloading its stake in Jiangsu DaFuHao Breweries in China, to China Resources Snow Breweries (CRSB).
The company, a joint-venture between Heineken and Fraser & Neave, confirmed today (13 July) that, through its focus on an “international premium brand strategy”, it will divest its holdings in Jiangsu Dafuhao and Shanghai Asia Pacific Brewery to CRSB for SGD46.6m (US$38.1m). CRSB is jointly-owned by SABMiller and China Resources Enterprise.
Back in 2008, Heineken-APB China (HAPBC), a joint-venture between APB and Asia Pacific Investment, lined up the divestment of its 49% stake in Jiangsu Dafuhao to its partner in the entity, Nantong Fuhao Alcohol Industry. APB said at the time that "while HAPBC remains focused on the beer business, NAC has diversified into other alcoholic beverages”. The transaction, hit the rocks in early-2009, however, with Nantong Fuhao claiming that “it is not timely to complete this transaction”.
Asia Pacific Investment is also jointly-held by Heineken and Fraser & Neave.
Through its 50% stake in HAPBC, APB’s share of the gain on the sale, which is expected to complete in the next three months, will come in at around SGD23.3m.
“The three key pillars of our international premium brand strategy comprise a distinctive portfolio of international beer brands, strategic marketing and extensive distribution and optimal production facilities,” said APB's CEO, Roland Pirmez. “As Jiangsu Dafuhao and Shanghai Asia Pacific Brewery do not align with this strategy, it only makes business sense for us to divest both assets.”
APB also said that it plans to increase capacity at its breweries in Hainan in the south of China, and Guangzhou in the south-east, by 33% and 50% respectively, to 2m and 1.5m hectolitres per year, respectively. The company said that it hopes to “take its international premium brands, Tiger and Heineken, to yet another level of success in the world’s largest beer market”.
To read APB's official statement, click here.
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