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.
A ruling on Kronenbourg 1664 by the UK's advertising watchdog has the potential to set a precedent for marketeers of home-brewed 'foreign' beers....
Diageo has kissed and made up with analysts after producing a solid set of full-year results and some pretty bullish guidance on years to come. Here, just-drinks takes you through the market reaction....
Duvel Moortgat has reported strong increases in net sales and profits for the first half of 2011, boosted by the acquisition of De Koninck Brewery and consumer thirst for small-scale beer brands. ...
An advert for Kronenbourg 1664 issue by Heineken in the UK has been labelled misleading by the country's advertising watchdog....
- Has the politics of M&A changed? - Analysis
- Fruit-flavoured beer? Think of the kids - Comment
- Drinks industry's gender failure - Consumer Trends
- Most Valuable Spirits Brands in 2017 - The facts
- Gallo's vineyard footprint in California - The map
- Anheuser-Busch readies US executive switches
- Brexit paperwork offers alcohol smuggling opp's
- Asahi’s Peroni Ambra - NPD
- Irish whiskey hails bid to relax distillery sales
- Heineken snaps up Stellenbrau craft brewery
- Central and East Europe Report Package
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Global vodka insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends