S KOREA: KKR sells stake in Oriental Brewery - report

By just-drinks.com editorial team | 7 July 2009

Kohlberg Kravis Roberts has agreed to sell a 50% stake in Oriental Brewery to a fellow private equity group, according to a report, only two months after it agreed to acquire the beer group from Anheuser-Busch InBev.

This story has been updated - click here to see the updated version.

Kohlberg Kravis Roberts (KKR) is selling the stake to Affinity Equity Partners for US$400m, according to the Financial Times newspaper today (7 July), citing people familiar with the situation.

If confirmed, the move means that KKR has offloaded part of Oriental only two months after agreeing to buy the company from Anheuser-Busch InBev for US$1.8bn.

Oriental Brewery is South Korea's second largest brewer with a 43% market share. Hite Brewery is number one on the market.

Affinity Equity Partners claims to be the "largest independent financial sponsor for buyout investments" in the Asia Pacific region. The group is largely run by former investment professionals of UBS Capital Asia Pacific, giving it a strong foothold in the region.

In June, KKR reported net losses of US$1.9bn for 2008.

As part of the Oriental deal, A-B InBev will have the option of buying back Oriental Brewery in five years.

Sectors: Beer & cider

Companies: InBev, Anheuser-Busch