CHINA: Asia Pacific Breweries sells Kingway Brewery stake
Asia Pacific Breweries ends interest in China's Kingway Brewery
The joint-venture between Heineken and Fraser & Neave, Asia Pacific Breweries, is to sell its stake in China's Kingway Brewery in order to invest more resources in its own business in the country.
Heineken-Asia Pacific Breweries China (HAPBC) confirmed today (9 March) that it has agreed to sell its 21.37% stake in Kingway Brewery for RMB1.08bn (US$164.5m). The price is 72% higher than the book value of the stake, said the group, which did not name the buyer.
"We believe that this is the best possible option for this asset, given the commissioning of our new brewery in Guangzhou and our current strategy to focus on the premium segment in China,” said Asia Pacific Breweries' CEO, Roland Pirmez.
HABC expects to report a gain of SGD76m from the stake sale, after deducting foreign exchange costs and expenses related to the deal.
It remains possible that Kingway's majority shareholder, GDH Ltd, could swoop to buy HABC's stake, in place of the current, unnamed buyer. The Tiger beer brewer said that GDH still has the option of acquiring the stake, but would have to match the terms of the current agreement.
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