China's fourth-largest beer maker, Harbin Brewery Group Ltd, said on March 23 the Harbin city government would sell its 29.07 % stake in the beer maker for HK$947.38 million (US$121.46 million). The Harbin city government has agreed to sell 291.5 million Harbin Brewery shares to an independent buyer for HK$3.25 each, a 19 % discount to their closing price of HK$4.00 on March 18, according to Dow Jones.

The buyer is Global Conduit Holdings Ltd., which is owned by a group of investors none of whom owns more than 20% of Global Conduit, Harbin Brewery said in a legal notice. Global Conduit's investors are independent of London-based SABMiller PLC (SAB.JO), Harbin Brewery's biggest shareholder with a 95% stake in a holding company that owns 29.41% of the beer maker, the notice said.

Harbin Brewery is the fourth-biggest brewery in China, the world's biggest beer market where annual consumption is estimated at about 250 million hectoliters with strong growth. The Harbin municipal government gave no reason for selling its Harbin Brewery stake. Because the shareholding is less than 30%, there is no requirement to make a general offer to buy the rest of the company under Hong Kong stock exchange listing rules.

SABMiller Plc, the world's second-biggest brewery, has a 29.4 % stake in Harbin Brewery. (US$1=HK$7.8)

23 March, 2004