E-Malt.com News article: 3307

China: InBev announced on September 20, 2004 that it is acquiring remaining 50% of Lion Group's beer business in China for a cash consideration of USD131.5 million, hereby gaining 100 per cent control. In September 2003, Lion Diversified Holdings Berhad (LDHB), a diversified Malaysian group, sold 50 per cent of its China brewing activities to InBev for USD131.5 million, and transferred the management control of the strategic partnership to InBev.

Lion Diversified Holdings Berhad (LDHB) is listed on the Kuala Lumpur Stock Exchange (KLSE), and realized a total beer volume of 13 million hectoliters in 2003.

This transaction complies with acquisition criteria for InBev: significant potential to grow outside both local and regional markets through strong brands, volumes, economies of scale, and critical mass; continued focus on the core-lager segment; and solid, dependable, management resources.

InBev is today the third-largest brewer in China, with 30 million hectoliters of capacity, produced by 18 breweries, and present in 6 major provinces: Zhejiang, Guangdong, Hubei, Hunan, Jiangsu and Shandong. InBev expects this transaction to close by the end of September.

InBev is a publicly traded company (Euronext: INB) based in Leuven, Belgium. The company's origins date back to 1366, and today it is the leading global brewer by volume. InBev's strategy is to strengthen its local platforms by building significant positions in the world's major beer markets through organic growth, world-class efficiency, targeted acquisitions, and by putting consumers first. InBev has a portfolio of more than 200 brands, including Stella Artois®, Brahma®, Beck's®, Leffe®, Hoegaarden®, Staropramen® and Bass®. InBev employs some 70,000 people, running operations in over 30 countries across the Americas, Europe and Asia Pacific. In 2003, InBev realized a net turnover of approximately 9.3 billion euro (2003 pro forma).


22 September, 2004