Thailand: Denmark’s Carlsberg could be again business partner with Chang

Denmark’s Carlsberg announced on August 31 that it has settled a dispute with its former Asian joint-venture partner Chang, for $120 million according to Reuters. Carlsberg said its 2005 company results would show it will be hit by a $40 million fair value adjustment of the purchase price for shares in two Asian breweries, which it purchased in 2002.

Carlsberg will also pay $80 million for a 50% stake in Brewery Invest Pte Ltd and 49% of Carlsberg Brewery Hong Kong from Chang. Carlsberg ended its partnership with Chang in 2003, saying that the Thai company had not fulfilled its obligations under the joint venture agreement.

Chang, controlled by Thai whisky tycoon Charoen Sirivadhanabhakdi, replied by demanding up to $2.5 billion in compensation for the termination of the joint venture.

"Chang and Carlsberg have agreed on an amicable settlement of the matters in dispute, including the arbitrations in London and Bangkok," the companies said in a joint statement, adding they will explore possibilities of working together in Thailand and Malaysia.

As part of the agreement, Carlsberg sells around 50% of Carlsberg Thai to Chang and 49% of Sukhothai Marketing Co. Carlsberg Thai will be renamed, the parties said.

Carlsberg anticipates 2005 net profit to rise 15% from last year's 1.1 billion Denmark krone

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