FDBusiness.com

Carlsberg Group has launched a partial take-over offer for up to 30.3% of the shares in Chongqing Brewery Company at RMB20 per share. Carlsberg Group is already the largest shareholder in CBC with a current shareholding of 29.7%. Upon the successful completion of the partial take-over offer, Carlsberg will have control over CBC and potentially up to 60% of the shares in CBC.

The transaction will enable Carlsberg, as the controlling shareholder of CBC, to directly manage the company, drive greater synergies and leverage the expanded production footprint across several new provinces in China. Carlsberg will look to strengthen CBC’s position in the market and build it into a world class brewer through the implementation of best practice systems and processes across the key areas of production and procurement, sales and marketing as well as finance.

At RMB 20 per share, the total purchase price for the additional 30.29% stake in CBC will be around RMB2.9 billion (approximately DKr2.65 billion, Eur355 million).

The purchase price corresponds to an EV/EBITDA of approximately 15.7x based on expected profits in the first year after completion of the transaction. The transaction will be financed through existing facilities and may take up to 12 months to complete assuming the usual regulatory approval process.

“Our Asian business is very important for our long-term growth strategy and we are very pleased that we now can take this important step forward in China,” comments Jorgen Buhl Rasmussen, president and chief executive of Carlsberg. “We believe that through our commitment to develop CBC’s strong local brands, Shancheng and Chongqing, together with our successful track record of implementing best practices and processes, we will strengthen the business significantly, both operationally and financially.”