Tsingtao is a leading brewery in China, the largest brewery market in the world
Fosun acquires 243m shares for HKD27.22 per share from Asahi Group
Fosun becomes 2nd largest shareholder
Tsingtao will leverage the consumption upgrade trend and take a leading role in the brewery market, and realize sustainable growth with the resource synergies generated from the partnership
SHANGHAI and HONG KONG, Dec. 20, 2017 /PRNewswire/ — Fosun International Limited (SEHK stock code: 00656) ("Fosun International") and its subsidiaries (together "Fosun") announced today the signing of an agreement with Asahi Group Holdings, Ltd. ("Asahi Group" 2502:TYO) to acquire 243,108,236 H-shares in Tsingtao Brewery Company Limited ("Tsingtao" 00168:HK, 600600:SH) for HKD27.22 per share. The total consideration of approximately HKD6.6bn will upon completion, see Fosun owning approximately 17.99% in the total issued shares in Tsingtao.
Tsingtao, one of the oldest beer producers in China, was founded in 1903 by German and British merchants under the name Nordic Brewery Co., Ltd. Tsingtao Branch. Today, Tsingtao continues to be a leading brewery in China, now the world’s largest beer market with sales into more than 100 different countries and regions. With more than 60 breweries across 20 provinces, municipalities and autonomous regions in China, Tsingtao produces 8 billion liters annually.
Tsingtao has a product matrix including middle and high-end products, and its leading brands include Tsingtao, Laoshan, and Hans, etc. In the first three quarters of 2017, Tsingtao recorded total revenues of RMB 23.38 billion (c.US$3.5 billion) and a net profit of RMB1.87 billion (c.US$276 million).
"Tsingtao is both a leading brewery in China, and a leading Chinese brand that has successfully penetrated the international markets. We are delighted to be the shareholder and strategic partner of Tsingtao," said Mr Guo Guangchang, Chairman of Fosun International. "By partnering Tsingtao’s brand and product mix with Fosun’s efficient operating model and global happiness ecosystem, we are confident of Tsingtao’s future prospects. In its pursuit to better serve customers by leveraging the consumption upgrade in the brewery market, Tsingtao’s brand value and market share can be further enhanced."
Huang Kexing, President of Tsingtao said: "We are very pleased to welcome Fosun as the shareholder of Tsingtao. Leveraging the resource synergies generated from the partnership, it is expected that Tsingtao can create new opportunities and drive future growth."
Pursuant to the announcement, the proposed transaction is expected to close in the first quarter of 2018.
Fosun International Limited is a family focused multinational company that has been listed on the main board of the Hong Kong Stock Exchange (00656:HK) since 2007. Founded in 1992, Fosun’s total assets exceed RMB500 billion (c.US$75 billion). With its roots in China, and through technology and innovation, Fosun’s mission is to create customer-to-maker (C2M) ecosystems in health, happiness and wealth, providing high-quality products and services for families around the world.
About Tsingtao Brewery
Tsingtao Brewery Co., Ltd., one of the oldest beer producers in China, was founded in 1903 by German and British merchants under the name Nordic Brewery Co., Ltd. Tsingtao Branch. Tsingtao Brewery was the sponsor of the Beijing Olympics in 2008. The brand value of Tsingtao is as high as RMB 129.762 billion, making Tsingtao the top Chinese beer company among the world’s top 500 brands. On July 15, 1993, Tsingtao Brewery listed on the Hong Kong Stock Exchange (stock code: 00168). On August 27, 1993, it was listed on the Shanghai Stock Exchange (stock code: 600600).
Cautionary Statement Regarding Forward-Looking Statements
This media release includes forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Fosun International Limited (the "Company") expects or anticipates will or may occur in the future (including but not limited to projections, targets, estimates and business plans) are forward-looking statements. The Company’s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, and other risks and factors beyond our control. In addition, the Company makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements. The financial figures in this media release are calculated using the average exchange rate for the period from January 2017 to June 2017 (USD/CNY=6.8607 HKD/CNY=0.8820), and period-end exchange rate as of June 30, 2017 (USD/CNY=6.7744 HKD/CNY=0.8679), unless otherwise stated.