China: SABMiller rumoured to be interested in Chongqing Brewery Co

World’s No. 2 brewer SABMiller plc plans to bid for a 12.25% stake in Chongqing Brewery Co, which is currently 17.46%-owned by Carlsberg Group, the Economic Observer reported on April, 16, citing unnamed sources familiar with the matter as saying.

Last week, Chongqing Beer (Group) Co, the largest shareholder of Chongqing Brewery, said that it plans to sell 59.30 million shares, or a 12.25% stake, in Chongqing Brewery, adding that domestic and overseas bidders should submit bidding documents within in ten working days after the announcement.

SABMiller, the London-based brewer, holds a 49% stake in China Resources Snow Breweries.

Shanghai-listed Chongqing Brewery sold 1 million kiloliters of beer last year, 2.11% more than in 2008. The company's net profit attributable to shareholders rose 10.91% year on year, hitting RMB 181 million and operating revenue was RMB 2.26 billion, up 6.56% from a year earlier, according to an earlier report from China Knowledge.

In 2010, the brewery aims to sell 1.12 million kL to reap RMB 2.59 billion in operating revenue. Capital expenditure could reach RMB 1.49 billion.

21 April, 2010