DENMARK: Carlsberg sells Hite stake
Carlsberg has sold almost half of its stake in South Korean brewer Hite.
The Danish brewing giant has offloaded 11.9% of its 25% holding in Hite onto the South Korean stock market, raising DKK1.9bn (US$298m).
A spokesman for Carlsberg said the company, which had first bought a stake in Hite six years ago, had hoped to attain majority control of the brewer. However, the Park family, which holds a 27% shareholding in Hite and has run the brewer for 50 years, refused to cede control.
"They are not interested in saying goodbye to their dominance (of Hite)," the spokesman told just-drinks today (2 December).
He said Carlsberg had kept a stake in Hite because it "still represents a very profitable investment". Last year Hite, South Korea's largest brewer, contributed DKK135m after tax to Carlsberg's EBIT.
He added: "The main reason for the sale is we want to free up some capital from our minority shareholdings. Debt reduction is really on the agenda here. Our debt is relatively big and gives us problems when we want to participate in the consolidation in the market."
However, the spokesman denied that Carlsberg had any major acquisitions in the pipeline.
Carlsberg said the sale of the Hite stake would result in a capital gain of around DKK1.2bn but, due to impairment charges, would not result in any change to operating profit for 2005.
Carlsberg has finally hooked up with a state-owned Vietnamese brewer....
Carlsberg has entered into negotiations with the IBM Group regarding a possible outsourcing of the Danish brewer's IT services in Europe....
Carlsberg's rating has been lowered following its disappointing Q1 figures earlier this week....
Carlsberg said today that global beer volume showed a 20% increase in the first quarter of the year driven by strong organic growth in BBH as well as a considerable contribution from acquisitions, inc...
Carlsberg has appointed a managing director for its Chinese operations....
Carlsberg has increased its ownership in Carlsberg Brewery Malaysia Berhad from 49.66% to 51%. The investment amounts to approximately US$6m....
Dutch brewer Heineken is rumored to have released a self-chilling beer can....
The Bosnian government has put a majority stake in the country's brewery Banjalucka Pivara up for sale. Previous efforts to privatise the brewer have failed....
- Ten questions for Diageo - Analysis
- Have spirits companies forgotten the mainstream?
- Does alcohol accelerate the onset of dementia?
- How craft beer has shattered its US shackles
- Pernod's mood darkens over India - Analysis
- Moet Hennessy unaffected by LVMH Dior buy
- Distell acquires majority stake in Cruz Vodka
- BrewDog moves into spirits with LoneWolf launch
- Diageo to cut 105 jobs in Scotland, 50 in Italy
- Portman Group heads to Tesco for new chief exec
- Global Scotch insights - market forecasts, product innovation and consumer trends
- Global Champagne and sparkling wine insights - market forecasts, product innovation and consumer trends
- Battle of the Generations - The fight for iGen, Millennial, Gen X and Baby Boomer consumers
- Craft Beer: Coming of Age or Past Its Prime?
- Myanmar - ISA Country Report