| Thu 26 Feb 2009, 10:30 | | SAB - SABMiller Joint Venture Makes China Acquisitions In Anhui Liaoning And |
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SAB
SOSAB
SAB - SABMiller Joint Venture Makes China Acquisitions In Anhui, Liaoning And
Zhejiang Provinces
SABMiller Plc
JSEALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
26 February 2009
SABMiller joint venture makes China acquisitions in Anhui, Liaoning and
Zhejiang Provinces
China Resources Snow Breweries Limited ("CR Snow"), SABMiller`s joint venture
in China with China Resources Enterprise, Limited ("CRE"), has announced that
it has agreed to acquire three breweries in Anhui, Liaoning and Zhejiang
provinces in three separate transactions. The total investment cost for the
three acquisitions is about US$110 million, which includes a cash
consideration of approximately US$93 million.
CR Snow has agreed to acquire the respective brewing assets of Anqing Tianzhu
Beer Company Limited ("Tianzhu Beer"), Liaoning Songlin Brewery Group Company
Limited ("Songlin Brewery") and Zhejiang Luck Beer Company Limited ("Luck
Beer") through three newly-formed subsidiaries in which it will own 80%, 85%
and 100% equity interests respectively. All three breweries will undergo a
technical upgrade to their existing facilities to comply with the production
requirements of the SNOW brand. Following this investment, they will add a
total of 4.7 million hectoliters to CR Snow`s existing production capacity of
about 117 million hectolitres.
Tianzhu Beer is situated in Anqing, an historic city in the south-western
region of Anhui Province. It had an annual production capacity of about
980,000 hectolitres and sales volumes of about 400,000 hectolitres in 2007.
At present, CR Snow has eight breweries in Anhui Province and is the leading
brewer in the province. The acquisition will enhance the company`s
operational efficiency in southern Anhui and further consolidate its
substantial share in the region.
Songlin Brewery has two plants at Chaoyang and Jianping with a total sales
volume of approximately 1.05 million hectolitres in 2007. Its combined annual
production capacity of 2.08 million hectolitres will be increased to 2.5
million hectolitres following acquisition. Songlin Brewery will generate
synergies with CR Snow`s existing breweries at Huludao and Panjin, cementing
a strong network in western Liaoning. It will also provide a foothold for
expansion into the central part of Inner Mongolia. Currently, CR Snow is the
largest brewer in Liaoning Province with nine breweries.
Luck Beer is located at Yuhuan County, Taizhou, an economically prosperous
coastal city in central Zhejiang. It has an annual production capacity of
about 1.2 million hectolitres and sales volumes of about 330,000 hectolitres
in 2007. CR Snow currently has three breweries in northern Zhejiang and a
fourth one under construction at Ningbo. This acquisition will support the
rapid development of the SNOW brand in the region, extending its presence in
southern Zhejiang.
Mr. Ari Mervis, Managing Director of SABMiller Asia, said: "The SNOW brand is
now amongst the leading beer brands in the world and these acquisitions will
further develop its national presence in mainland China."
Mr. Long Chen, Managing Director of China Resources Enterprise, Limited said,
"Liaoning, Anhui and Zhejiang are all our major existing markets. These
acquisitions will enable us to strengthen on our position with wider
geographical coverage and lower cost base. It will also optimise our product
structure."
Ends
Notes to editors:
About SABMiller plc
SABMiller plc is one of the world`s largest brewers with brewing interests
and distribution agreements across six continents. The group`s wide portfolio
of brands includes premium international beers such as Grolsch, Miller
Genuine Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as market-
leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie.
SABMiller is also one of the largest bottlers of Coca-Cola products in the
world.
In the year ended 31 March 2008, the group reported US$3,639 million in
adjusted pre-tax profit and revenue of US$21,410 million. SABMiller plc is
listed on the London and Johannesburg stock exchanges.
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 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 about 60 breweries in the Chinese
Mainland with a total sales volume of about 6.9 million kiloliters in 2007.
About China Resources Enterprise, Limited
China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange
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, beverage, food
processing and distribution, textile and property investment.
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
Enquiries:
Tel: +44 20 7659
SABMiller plc 0100
Sue Clark Director of Corporate Tel: +44 20 7659
Affairs 0184
Gary Leibowitz Senior Vice President, Tel: +44 20 7659
Investor Relations 0174
Nigel Fairbrass Head of Media Relations Tel: +44 7799 894265
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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regarding the Company`s financial position, business strategy, plans and
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the future. These forward-looking statements speak only as at the date of
this announcement. The Company expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any forward-looking
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Date: 26/02/2009 10:30:01 Produced by the JSE SENS Department.
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