Kingway Brewery Holdings Ltd., the Chinese company that has called for bids for its beer business, rose the most in a month in Hong Kong trading after China Resources Enterprise Ltd. said it plans to make an offer.
The Guangdong-based brewery climbed 3.1 percent to HK$2.68, the biggest increase since Oct. 24, giving it a market value of about HK$4.59 billion ($592 million). China Resources, which closed 2.5 percent higher at HK$26.25, has no timeframe for its bid, Vincent Tse, a Hong Kong-based head of strategic planning, said today, declining to provide further details.
“Kingway is a good asset,” Tse said. “The tough operating environment in Guangdong has improved.”
Kingway put the assets up for sale in January as it lost market share in its home province to competitors including Tsingtao Brewery Co. The company slumped to a loss in the first half as falling sales and rising costs wiped out profits.
Tse didn’t say whether China Resources was targeting the entire Kingway business, or just the beer operations.
China Resources’s venture with SABMiller Plc sells Snow, the No. 1 beer brand in China, which had a 22 percent market share last year, according to Euromonitor International, a London-based researcher.