China: InBev accelerates the timing of the acquisition of 100% of Fujian Sedrin Brewery
InBev announced on January 25 that it has reached further agreement with the non-State shareholders to accelerate the timing of the transfer of their 60.52% equity interests in Fujian Sedrin Brewery Co. Ltd. (“Fujian Sedrin”). This will allow the early creation of InBev Sedrin, a wholly foreign owned enterprise (WFOE), 100% owned by InBev.
InBev recently agreed to acquire the 39.48% equity interests in Fujian Sedrin owned by the State as the first part of a multi-stage transaction. The accelerated timing of the transfer of the non-State equity interests will allow InBev to bring forward the date at which it is able to complete acquisition of 100% of Fujian Sedrin. This transaction is subject to regulatory approvals and is expected to close before the end of the year.
There are no other changes to the terms of the transaction announced on 23 January, whereby InBev agreed to acquire Fujian Sedrin, the largest brewer in Fujian Province, for a total cash consideration of RMB 5,886 million (equivalent to Euro 614 million*).
Brent Willis, Zone President InBev Asia Pacific, said: “The accelerated transfer of the non-State equity interests will allow InBev to bring forward the implementation of our growth plans for InBev Sedrin, create a single company that is directly owned and managed by InBev, and benefit earlier from the synergies of this transaction with our existing business in China.”
About InBev China
InBev is one of the largest brewers in China, with nearly 35 million hectoliters of sales in 2004, with leading market shares in each of its provinces and 30 production sites. It has operations in Fujian, Guangdong, Hebei, Hubei, Hunan, Jiangsu, Jiangxi and Zhejiang provinces and employs 15.000 people. The company has been active in China since 1984, providing the transfer of technical and brewing know-how to various Chinese brewing companies, including the Zhujiang Brewery in Guangzhou. In 1997, InBev entered the Chinese beer market as an operator with the acquisition of the Nanjing and Jingling Breweries. In 2002, it acquired a 24 per cent share in the Zhujiang Joint Stock Company, and a 70 per cent stake in K.K. Group’s brewing business, based in Zhejiang Province. In 2004, InBev acquired the Chinese brewery activities of the Lion Group of Malaysia, providing InBev China with leading market positions in the eight provinces where it is present. In July 2004, InBev also acquired 70 per cent share in Zhejiang Shiliang Brewery Company Ltd. in Zhejiang province and in September 2005 it acquired 100% ownership in K.K.’s brewing activities. InBev's longstanding interaction with its Chinese partners has provided the company with strong local relationships and a good understanding of the Chinese beer market.
About InBev
InBev is a publicly traded company (Euronext: INB) based in Leuven, Belgium. The company's origins date back to 1366, and today it is the leading global brewer by volume. InBev’s strategy is to strengthen its local platforms by building significant positions in the world's major beer markets through organic growth, world-class efficiency, targeted acquisitions, and by putting consumers first. InBev has a portfolio of more than 200 brands, including Stella Artois®, BRAHMA®, Beck’s®, Skol®—the third-largest selling beer brand in the world—Leffe®, Hoegaarden®, Staropramen® and Bass®. InBev employs some 77,000 people, running operations in over 30 countries across the Americas, Europe and Asia Pacific. In 2004, InBev realized revenue of 8.57 billion euro (including four months of AmBev). For further information visit www.inbev.com.
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