| Mon 24 Jul 2006, 9:30 | | SABMiller Associate Announces Acquisitions In Zhej |
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SAB
SOSAB
SABMiller Associate Announces Acquisitions In Zhejiang And Anhui Provinces In
China
JSEALPHA CODE: SAB
ISSUER CODE: SOSAB
ISIN CODE: GB0004835483
Ref 30/2006
SABMiller associate announces acquisitions in Zhejiang and Anhui provinces in
China
London and Johannesburg, 24 July 2006. China Resources Snow Breweries
Limited ("CR Snow"), an associate of SABMiller plc and a subsidiary of China
Resources Enterprise, Limited ("CRE"), announces that it has agreed to
acquire a 100% equity interest in Zhejiang Yinyan Brewery Company Limited or
"Yinyan Brewery" for a cash consideration of US$42.3 million. In addition,
CR Snow will acquire the brewing related assets of the Anhui Huaibei
Xiangwang Brewery Company Limited or "Xiangwang Brewery" for a consideration
of US$10.1 million.
Situated in the Haiyan county of Zhejiang Province on the east coast of
China, the Yinyan Brewery is well positioned to further extend CR Snow"s
footprint in northern Zhejiang, an area which is close to a number of major
cities including Shanghai, Hangzhou, Suzhou and Ningbo. Similarly, Xiangwang
Brewery is based in Huaibei, a major city in northern Anhui. Upon
acquisition, our national brand "SNOW" will be produced as soon as
practicable. At present, CR Snow has two breweries in Zhejiang Province and
five breweries in Anhui Province, with 2005 sales volumes of 2.9 million
hectolitres and 4.9 million hectolitres respectively. Both breweries are
strategic acquisitions in the development of CR Snow"s footprint in China.
Incorporating Yinyan Brewery"s net debt of US$6 million and CR Snow"s
intention to invest an additional US$1.8 million, the total investment cost
in Yinyan Brewery is expected to be approximately US$50.2 million. The
current annual production capacity of the brewery is 1.8 million hectolitres
and this will be increased to 2.4 million hectolitres after undergoing the
planned investment. At present, the portfolio is focused on the "Yinyan"
series of beers, which are distributed in the Jiaxing area of Zhejiang; and
in Shanghai. In 2005 the Yinyan Brewery sold approximately 1 million
hectolitres of beer.
The consideration for the acquisition of Xiangwang Brewery is based on
appraised asset value, with an intended further investment of US$7.4 million,
bringing total investment cost to approximately US$17.4 million. The annual
production capacity of the brewery will be upgraded from 930,000 hectolitres
to 1.6 million hectolitres. At present, the brewery"s main brand "Xiangwang",
has a dominant market share in Huaibei and in 2005 the brewery reported sales
volume of about 650,000 hectolitres.
Mr. Andre Parker, Managing Director of SABMiller Africa & Asia, said, "We
have a profitable and growing presence in Zheijiang and Anhui. Therefore
these acquisitions will not only effectively reinforce CR Snow"s market
position in these provinces, but provide a larger platform to expand our
national brand SNOW in these strong growth areas."
Mr. Mark Chen, Managing Director of China Resources Enterprise, Limited said,
"The two acquisitions play a crucial role in the strategic development of CR
Snow in these areas. Yinyan Brewery will generate synergies with our
existing breweries at Qianjiang and Xiling, cementing a strong network in the
northern region of Zhejiang Province. It will also provide us direct access
to the Shanghai market given its proximity to the city. Whilst at the same
time, acquisition of Xiangwang Brewery will establish CR Snow"s production
base in northern Anhui and add to our dominant market position in the
province."
Ends
Notes to editors
About China Resources Snow Breweries Limited
China Resources Snow Breweries Limited was established in 1994 and is engaged
in the production, sales and marketing of beer and beverages in China. Its
shareholders are China Resources Enterprise, Limited and SABMiller plc.
China Resources Enterprise, Limited has a 51% interest in China Resources
Snow Breweries Limited while SABMiller plc holds a 49% interest. It operates
about 40 breweries in the Chinese Mainland with a total sales volume of about
39.5 million hectolitres in 2005.
About SABMiller plc
SABMiller plc is one of the world"s largest brewers with brewing interests or
distribution agreements in over 60 countries across five 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 2006, the group reported US$2,626 million adjusted
pre-tax profit and a turnover of US$15,307 million. SABMiller plc is listed
on the London and Johannesburg stock exchanges.
This announcement is available on www.sabmiller.com
About China Resources Enterprise, Limited
China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange
and is also traded on SEAQ International of the London Stock Exchange. It is
also one of the constituent stocks of the Hang Seng Index in Hong Kong and
Hang Seng London Reference Index. The Group focuses on the consumer
businesses in both Hong Kong and the Chinese Mainland, with core activities
being retail, beverage, food processing and distribution, textile and
property investment.
Enquiries:
SABMiller plc Tel: +44 20 7659 0100
Sue Clark Director of Corporate Tel: +44 20 7659 0184
Affairs
Gary Leibowitz Senior Vice President, Tel: +44 20 7659 0119
Investor Relations
James Crampton Media Relations Manager Tel: +44 20 7659 0172
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.
This document includes "forward-looking statements". These statements may
contain the words "anticipate", "believe", "intend", "estimate", "expect" and
words of similar meaning. All statements other than statements of historical
facts included in this announcement, including, without limitation, those
regarding the Company"s financial position, business strategy, plans and
objectives of management for future operations (including development plans
and objectives relating to the Company"s products and services) are forward-
looking statements. These forward-looking statements involve known and
unknown risks, uncertainties and other important factors that could cause the
actual results, performance or achievements of the Company to be materially
different from future results, performance or achievements expressed or
implied by such forward-looking statements. These forward-looking statements
are based on numerous assumptions regarding the Company"s present and future
business strategies and the environment in which the Company will operate in
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
statements contained in this announcement to reflect any change in the
Company"s expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
Any information contained in this announcement on the price at which the
Company"s securities have been bought or sold in the past, or on the yield on
such securities, should not be relied upon as a guide to future performance.
Date: 24/07/2006 09:30:13 AM Produced by the JSE SENS Department
