| Fri 24 Aug 2007, 11:00 | | SAB - SABMiller Plc - Joint venture makes China ac |
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SAB
SOSAB
SAB - SABMiller Plc - Joint venture makes China acquisitions in Liaoning, Anhui
and Hunan Provinces
SABMiller Plc
Jse Alpha Code: SAB
Issuer Code: SOSAB
ISIN Code: GB0004835483
24 August 2007
SABMiller joint venture makes China acquisitions in Liaoning, Anhui and Hunan
Provinces
China Resources Snow Breweries Limited ("CR Snow"), SABMiller`s joint venture in
China with China Resources Enterprise, Limited (or "CRE"), has announced that it
has agreed to acquire four breweries in separate transactions. Two breweries are
in Liaoning province, one brewery is in Anhui and one is in Hunan province. The
total investment cost for the four acquisitions is US$79m, which includes a cash
consideration of US$57.0m.
CR Snow has agreed to acquire an 80% equity interest in Liaoning Yalujiang
Brewery Company Limited ("Yalujiang Brewery") and the brewing assets of Huludao
Juhua Brewery Company Limited ("Juhua Brewery") through a joint venture in which
it will own an 85% equity interest. It is also acquiring the brewing assets of
Anhui Wanpi Brewery Company Limited ("Wanpi Brewery") and a 100% equity interest
in Hunan Xinghua Brewery Company Limited ("Xinghua Brewery"). All four breweries
will benefit from enhanced investment in their facilities to bring them up to CR
Snow`s production standards.
Liaoning province is located in the north-east of China with a population of
about 42 million inhabitants. At present, CR Snow has eight breweries in
Liaoning province and is the leading brewer there. It has total production
capacity of over 11 million hectolitres but the existing plants are close to
full capacity. The addition of Yalujiang Brewery at Dandong in south-eastern
Liaoning and Juhua Brewery in western Liaoning will provide immediate additional
production capacity of 2.7 million hectolitres. The breweries will also enhance
distribution efficiency, extending CR Snow`s reach over this extensive province.
Located in the north-eastern county, Wuhe in Anhui province, Wanpi Brewery will
boost CR Snow`s production capacity there to approximately 14 million
hectoliters. It will also generate synergies with CR Snow`s existing breweries
at Bengbu and Chuzhou, cementing a strong network in the northern region of
Anhui. Currently, CR Snow is the largest brewer in the province with seven
breweries.
Xinghua Brewery is situated at Yueyang in the north-eastern region of Hunan
province and alongside the famous Dongting Lake. At present, CR Snow does not
have any plant in Hunan province though a small quantity of SNOW was sold
locally. The current annual production capacity of the brewery is 1.2 million
hectolitres and it has the dominant market share in Yueyang.
Mr. Andre Parker, Managing Director of SABMiller Africa & Asia, said, "The
acquisitions reflect our commitment to accelerate the national presence of
"SNOW". Upon conclusion, they will add a total of about 5.0 million hectolitres
to CR Snow`s current production capacity of close to 90 million hectolitres. The
average attributable investment cost of around US$18 per hectolitre, is very
reasonable; reflecting our ability to expand profitably at low cost."
Mr. Mark Chen, Managing Director of China Resources Enterprise, Limited said,
"The acquisitions in Liaoning and Anhui will generate synergies with our
existing breweries, refine the distribution network and strengthen our leading
position in the provinces. In Hunan, the acquisition will provide a solid
platform for our national brand "SNOW" to expand and concurrently complement our
existing operation in Wuhan given its close proximity."
Ends
About SABMiller plc
SABMiller plc is one of the world`s largest brewers with brewing interests or
distribution agreements in over 60 countries across six continents. The group`s
brands include premium international beers such as Miller Genuine Draft, Peroni
Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market
leading local brands. Outside the USA, SABMiller plc is also one of the largest
bottlers of Coca-Cola products in the world.
In the year ended 31 March 2007, the group reported US$3,154 million adjusted
pre-tax profit and revenue of US$18,620 million. SABMiller plc is listed on
the London and Johannesburg stock exchanges.
This announcement is available on the company website: www.sabmiller.com
High resolution images are available for the media to view and download free of
charge from www.sabmiller.com or www.newscast.co.uk
About China Resources Snow Breweries Limited
China Resources Snow Breweries Limited was established by the Company in 1993
and became a joint venture with SABMiller plc in 1994. It is engaged in the
production, sales and marketing of beer and beverages 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 more than 50 breweries in the Chinese
Mainland with a total beer sales volume of about 5.3 million kiloliters in 2006.
About China Resources Enterprise, Limited
China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange
and is also traded on the London Stock Exchange. It is 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, beverage, food processing and distribution, textile and property
investment.
Enquiries: Tel: +44 20 7659 0100
Sue Clark
Director of Corporate Affairs
Tel: +44 20 76590184
Gary Leibowitz
Senior Vice President, Investor Relations
Tel: +44 20 76590119
Isabel Unsworth
Business Media Relations Manager
Tel: +44 20 76590130
This announcement does not constitute an offer to sell or issue or the
solicitation of an offer to buy or acquire securities of SABMiller plc (the
"Company") or any of its affiliates in any jurisdiction or an inducement to
enter into investment activity.
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Date: 24/08/2007 11:00:01 Produced by the JSE SENS Department.
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