SINGAPORE: Asia Pacific Breweries Jiangsu Dafuhao deal hits further snag

By | 22 February 2012

Asia Pacific Breweries struggles to cut ties with Jiangsu Dafuhao Breweries

Asia Pacific Breweries struggles to cut ties with Jiangsu Dafuhao Breweries

Asia Pacific Breweries faces a further delay in disentangling itself from Jiangsu Dafuhao after the Chinese brewer's controlling shareholder filed legal action to prevent a stake sale.

Asia Pacific Breweries said this week that China's antimonopoly authority has cleared its deal to sell a 49% stake in Jiangsu Dafuhao to CR Snow Breweries, the joint-venture between SABMiller and China Resources Enterprise. The deal is valued at SGD46.6m (US$37m).

However, the sale has hit a snag due to the opposition of Jiangsu Dafuhao's controlling shareholder. Asia Pacific Breweries (APB) said that it has received a summons from the Intermediate People’s Court of Nantong City, Jiangsu Province, instigated by Jiangsu Dafuhao Breweries Ltd. Nantong Fuhao Alcohol Industry Co holds the remaining 51% of Jiangsu Dafuhao.

"The company believes that the claim is groundless and without merit, and has sought legal advice," said APB, itself a joint-venture between Heineken and Fraser & Neave. The Tiger lager brewer said it would "take all necessary steps to oppose it and to complete the proposed transaction".

APB has been seeking to cut ties with Jiangsu Dafuhao since 2008. In 2009, Nantong Fuhao Alcohol Industry Co refused to acquire APB's stake in the brewer.

Sectors: Beer & cider, Emerging markets – BRIC, Mergers & acquisitions

Companies: SABMiller, Heineken

View next/previous articles

Currently reading -

SINGAPORE: Asia Pacific Breweries Jiangsu Dafuhao deal hits further snag

There are currently no comments on this article

Be the first to comment on this article

Related research

Heineken USA Inc.: Consumer Packaged Goods Company Profile and SWOT Report

Canadean's "Heineken USA Inc.: Consumer Packaged Goods Company Profile and SWOT Analysis" contains in depth information and data about the company and its operations. The profile contains a company overview, business description, SWOT analysis, Key E...

Alcoholic Drinks Packaging in the Netherlands

In 2011 Heineken BV launched a new 4-litre other rigid container mini keg in beer under its Heineken brand designed for domestic consumption. This pack type is a significantly lighter-in-weight alternative to the five-litre aluminium keg which was la...

Beer in Singapore

Beer in Singapore industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2006-10, and forecast to 2015). The profile also contains descriptions of the leading players...

Related articles

SINGAPORE: Asia Pacific Breweries and Fraser & Neave shares suspended

Trading in shares of Asia Pacific Breweries and Fraser & Neave have been suspended amid rumours of Heineken planning to raise its bid for the Tiger brewer.

just the Round-Up - The week in drinks

The top ten stories published on just-drinks last week

UK: Heineken backs Strongbow Pear in TV push

Heineken has launched a new TV advertising campaign in support of its latest Strongbow cider brand in the UK.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page