Wrap Text
SABMILLER’S Chinese joint venture to acquire Brewery Business of Kingway
SABMiller plc
JSEALPHA CODE: SAB
ISIN CODE: SOSAB
ISIN CODE: GB0004835483
SABMILLER’S CHINESE JOINT VENTURE TO ACQUIRE BREWERY BUSINESS OF KINGWAY
SABMiller plc announces that China Resources Snow Breweries Limited ("CR Snow"), its joint
venture with China Resources Enterprise, Limited ("CRE"), has entered into an agreement
with Kingway Brewery Holdings Limited (“Kingway”) to acquire its brewery business
(“Brewery Business”), for a total cash consideration of RMB 5.38bn (c. US$864m).
The Brewery Business comprises seven breweries, four of which are in one of China’s fastest
growing and most affluent regions, Guangdong province, with breweries also in the growing
Sichuan and Shaanxi provinces and Tianjin municipality. Total annual production capacity of
the Brewery Business is 14.5 million hectolitres. In 2011, the Brewery Business sold 9.3
million hectolitres of beer.
The acquisition is highly complementary with CR Snow’s existing footprint and will reinforce
its production base, sales infrastructure and market position in the fast growing Guangdong
region as well as providing additional scale and market presence in Sichuan, Shaanxi and
Tianjin.
Ari Mervis, Managing Director of SABMiller Asia Pacific, commented: “The acquisition of
Kingway gives us greater access to high growth and attractive regional markets in China,
thereby enhancing CR Snow’s competitive position.”
Mr. Chen Lang, Chairman of CRE said: "Kingway is a widely recognised brand and quality
asset and enjoys a strong market share with an extensive sales network and established
manufacturing infrastructures in China, especially in Guangdong province. We are delighted
to have Kingway join the CRE family. The transaction not only strengthens our production
capacity and economies of scale, but also further optimizes the sales network of CR Snow in
China. This continues to enhance our leading position in China’s beer industry."
The transaction is subject to regulatory approvals and final approval of Kingway's
shareholders.
Notes to editors
SABMiller
SABMiller plc is one of the world’s leading brewers with more than 200 beer brands and
some 70,000 employees in over 75 countries. The group’s portfolio includes global brands
such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch; as well as
leading local brands such as Aguila (Colombia), Castle (South Africa), Miller Lite (USA), Snow
(China), Victoria Bitter (Australia) and Tyskie (Poland). SABMiller also has growing soft
drinks businesses and is one of the world’s largest bottlers of Coca-Cola products.
In the year ended 31 March 2012 the group reported EBITA of US$5,634 million and group
revenue of US$31,388 million. SABMiller plc is listed on the London and Johannesburg stock
exchanges.
www.sabmiller.com
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China Resources Snow Breweries, Limited
China Resources Snow Breweries Limited was established in 1993 and became a joint
venture with SABMiller plc in 1994. It is engaged in the production, sales and marketing of
beer in China. Its shareholders are China Resources Enterprise, Limited and SABMiller Asia
Limited, a subsidiary of SABMiller plc. China Resources Enterprise, Limited has a 51%
interest in China Resources Snow Breweries Limited while SABMiller Asia Limited holds the
remaining 49% interest. It operates over 80 breweries in China with a total volume capacity
of more than 170 million hectolitres.
China Resources Enterprise, Limited
China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange (“HKSE”) and
is also one of the constituent stocks of the Hang Seng Index in Hong Kong. The Group
focuses on the consumer businesses in both the Chinese Mainland and Hong Kong, with
core activities being retail, beer, food and beverage.
Kingway Brewery Holdings, Limited
Kingway Beer Group was established in 1985; Kingway Brewery Holdings Ltd. (previously
Guangdong Brewery Holdings Ltd.) was established and then listed on the HKSE in 1997.
Kingway is principally engaged in the production, distribution and sale of beer. In 2011
Kingway sold 9.3 million hectolitres of beer and reported revenues of HK$1.758 billion.
05 February 2012
Enquiries
SABMiller plc
t: +44 20 7659 0100
Catherine May
Director of Corporate Affairs
SABMiller plc
t: +44 20 7927 4709
Gary Leibowitz
Senior VP, Investor Relations
SABMiller plc
t: +44 20 7659 0174
Richard Farnsworth
Business Media Relations Manager
SABMiller plc
t: +44 20 7659 0188
Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
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