SABMILLER PLC - SABMILLER JOINT-VENTURE ACQUIRES LION NATHAN BREWERIES IN CHINA
FOR US$154M
SABMILLER PLC
JSEALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
SABMILLER JOINT-VENTURE ACQUIRES LION NATHAN BREWERIES IN CHINA FOR US$154M
London and Johannesburg, 15 September 2004. SABMiller plc`s Chinese joint-
venture, China Resources Breweries Limited (`CRB`), announces that it has
acquired the Chinese brewing interests of Lion Nathan for an equity value of
US$71 million and estimated assumed debt of US$83 million. The acquired
business consists of three breweries employing over 1,000 people in the
economically developed Yangtze River Delta region (Southern Jiangsu province)
close to Shanghai. The breweries have installed capacity of 5.16 million
hectolitres with sales volumes of 2.19 million hectolitres forecast for the year
ending September 2004. In the six months to March 2004, spanning the low-
consumption winter season, Lion Nathan`s Chinese business reported an EBITA loss
of A$7.0 million on sales of A$22.8 million. Volumes increased by 63 per cent
to 0.5 million hectolitres, with organic volumes increasing 54 per cent.
The acquired company`s brands include the mainstream beers Taihushui, Linkman
and Rheineck which are distributed in the Yangtze River Delta. In this region
the company has an estimated market share of 20% and leading positions in and
around the cities of Wuxi, Suzhou, Changzhou and Nanjing.
Andre Parker, Managing Director of SABMiller Africa & Asia commented:
`This acquisition extends CRB`s footprint in the strategically important Jiangsu
and Shanghai area with combined market volumes of 16 million hectolitres and
above average market pricing. The breweries` excellent geographic fit with
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