E-Malt.com News article: Central America: SABMiller acquires remaining minority interest in its subsidiary - BevCo

SABMiller plc, the world's second-biggest brewer, announced on November 21 that it has acquired for cash the remaining 41.8% minority interest in its Central American subsidiary, BevCo Limited (“BevCo”) from existing shareholders. The book value of the gross assets acquired was approximately US$464 million (net assets of approximately US$298m).

"The transaction we carried today helps us to integrate our central American businesses based in El Salvador and the Honduras with SABMiller South America," said company spokesman James Crampton.

BevCo is the leading brewer and soft drinks bottler in Honduras and El Salvador whose key owned and licensed brands include Pilsener, Bahia, Golden Light, Regia Extra, Miller Genuine Draft, Port Royal, Imperial, Salvavida and Coca Cola. In 2005 BevCo reported turnover of US$521m and EBITDA – net cash inflow from operating activities, before working capital movements – of US$129m.

SABMiller has operated in Central America since November 2001 when it formed a joint venture in the region.

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 2005, the group reported US$2,194 million pre-tax profit and a turnover of US$14,543 million on a UK GAAP basis. SABMiller plc is listed on the London and Johannesburg stock exchanges.

Last month, SABMiller completed the $7.8-billion takeover of Colombian peer Bavaria, which gave the company its first foothold in South America. It has since launched an offer worth $1.362 billion for the 28.23-percent stake in Bavaria that it does not own.

Crampton added that the remaining Bavaria stake comprised of minority shareholders, while the BevCo deal was "completely separate". In addition, SABMiller launched in October an offer worth $478 million for full-control of Peruvian peer Backus, in which it has a near 80-percent stake.

Earlier this month, SABMiller posted a 15-percent drop in pre-tax profits during the first half of its financial year. The brewer said that pre-tax profit fell to $1.126 billion in the six months to 30 September 2005, compared with $1.324 billion during the same period a year earlier.


22 November, 2005