| Wed 7 Nov 2001, 0:00 | | South African Breweries Makes Third Acquisition In |
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London, 7 November 2001: South African Breweries plc (SAB), the leading
brewer in developing markets, today announces it has acquired, through its
subsidiary company, SAB India Limited, a 53% controlling interest in Rochees
Breweries Limited (RBL), a company listed on a number of stock exchanges in
India, including the Bombay Stock Exchange. The purchase consideration for
SAB's interest is US$2 million payable in cash, the equivalent to 97 million
rupees, or 10.15 rupees per share.
Under the terms of Securities and Exchange Board of India regulations, a
simultaneous public offer will be made to the RBL minority shareholders. The
acquisition is subject to a number of conditions precedent, and will be
funded from SAB's internal resources.
RBL operates a new brewery situated in Rajasthan, approximately 100
kilometres from New Delhi, with a capacity of 110,000 hectolitres, which is
currently being expanded to 170,000 hectolitres. The brewery, which
currently brews under licence for United Breweries ("UB"), requires no
significant upgrading. SAB India Limited will use the brewery to produce a
stable of local and international brands.
Strategically, RBL will afford SAB India Limited access to the important
northern Indian beer market of Rajasthan, the fifth largest beer consuming
state in India and growing at 8%-10% per annum, as well as to other northern
states in the region, including Delhi, which has no breweries of its own.
Graham Mackay, CEO of SAB plc said: "This acquisition continues our
strategy of investing in developing markets, adding to SAB's existing
operations in India, and extending SAB's presence in the northern states.
SAB now has capacity and direct access to markets in four of the five
largest beer consuming states in India, which together account for over 70%
of the Indian beer market. RBL will provide opportunities for our future
expansion in India, whose demographics and low per capita beer consumption
provide substantial head-room for growth."
Notes to editors
1. SAB is the world's leading brewer in developing markets, with major
brewing and distribution operations in Africa, Central and Eastern Europe,
and Asia. It is the world's fifth largest brewer overall by volume with 86
breweries in 22 countries and over 31,000 employees. In the year to March
31 2001, SAB generated US$646 million pretax profit from a turnover of
US$4.184 billion. SAB is listed on both the London and the Johannesburg
stock exchanges.
2. SAB has operated in India since October 2000, when it bought the Narang
brewery, located near Lucknow in the state of Uttar Pradesh. The brewery,
which has a capacity of approximately 120,000 hectolitres, has recently been
modernized and commenced full production in April 2001.
3. In June 2001, SAB acquired a controlling interest in Mysore Breweries
Limited (MBL), listed on the Bangalore Stock Exchange. MBL operates two
breweries, with a combined capacity of 480,000 hectolitres, situated in
Southern India at Bangalore and Aurangabad.
4. SAB India has set up its Corporate Office in Gurgaon, which is near New
Delhi.
For further information:
Nick Chaloner, Director of Communications SAB plc
+44 (0) 20 7659 0119
Mob: +44 (0) 7880 502 755
Ciaran Baker, Head of Communications SAB plc
+44 (0) 20 7659 0120
Mob. +44 (0) 7979 954 493
Anna Miller Salzman, Head of Investor Relations SAB plc
+44 (0) 20 7659 0106
Mob: +44 (0) 7973 837 070
This announcement is available on the SAB website at www.sabplc.com
