South Korea: Hite Brewery buys into Jinro Ltd. to stabilize managerial rights

Hite Brewery Co., South Korea's leading brewer, said it has bought a 0.41-percent stake in Jinro Ltd., the nation's largest maker of the popular liquor soju, for 10 billion won (US$9.76 million) to stabilize managerial rights, AsiaPulse reported June 10.

The stake purchase increased Hite Brewery's stake in the soju manufacturer to 47.19 per cent from 46.78 per cent, the South Korean leading brewer said in a regulatory filing.

On May 29, Hite Brewery bought a 4.93-percent stake in Jinro to enhance its managerial rights, raising its stake to 46.78 per cent from 41.85 per cent.

In 2005, Hite Brewery acquired Jinro for 3.4 trillion won ($3.7 billion).

Jinro, which was delisted in January 2003 on financial woes in the wake of the 1997-98 Asian financial crisis, is gearing up for the relisting of its shares on the Seoul bourse.

The Korea Exchange, the stock market operator, gave the go-ahead for Jinro's plan on May 6.

Hite Brewery is scheduled to turn itself into a holding company by separating business units on July 1.

10 June, 2008