China Resources Buys 21% Stake in Chinese Brewery Kingway
China Resources paid $161.3 million for the stake, according to data on the Hong Kong stock exchange website today. The website listed multiple units of China Resources in the transaction, including food, retail and property company China Resources Enterprise Ltd. (291)
China Resources paid 44.1 cents a share on March 9, according to the data on the Hong Kong stock exchange. The shares last traded at HK$2.30, equivalent to 30 U.S. cents, on March 9.
Kingway rose to the highest in five months yesterday in Hong Kong trading after a Heineken NV joint venture said it was selling its stake in the beer maker.
The venture between Heineken, the world’s third-largest brewer, and Fraser & Neave was selling its 21.4 percent stake in Kingway to an unidentified buyer, according to a statement to Singapore’s stock exchange yesterday.
PricewaterhouseCoopers LLP was an adviser to the sale, Sarah Koh, a spokeswoman at Asia Pacific Breweries Ltd., one of the entities involved in the Heineken-Fraser & Neave joint venture, said in an e-mailed response yesterday. Heineken-APB paid $91 million for the Kingway stake in 2004, she said.
Mona Leong, a spokeswoman for China Resources in Hong Kong, didn’t respond to a phone call made to the company out of office hours. Vanessa Wong, company secretary at Kingway, also didn’t respond to a call made after office hours.
Kingway owns seven breweries in China, each with an annual production capacity of 200,000 tons, according to its web site.
With assistance from John Duce.--Editors:
To contact the reporter on this story: John Duce in Hong Kong at Jduce1@bloomberg.net