Danish beer maker Carlsberg A/S (CPH:CARL-A) said today it is launching a bid of CNY20.00 (USD3.21/EUR2.47) per share to acquire up to 30.29% in Chinese sector player Chongqing Brewery Co Ltd (SHA:600132), or CBC.
With this move, the Danish brewer seeks to take control of its Chinese partner, as it already holds a stake of nearly 30% in CBC. A week ago, Carlsberg noted it was considering raising its interest in the firm. The bidder plans to beef up the target’s position in the market and make it a world class brewer, it noted. The transaction would allow Carlsberg to directly manage CBC and drive increased synergies, it said today.
Carlsberg expects to pay CNY2.9bn for the additional shares, using existing facilities. The transaction is projected to be EPS enhancing in the first year following closing, which is seen to occur in the next 12 months. The move is pending regulatory clearance.
CBC’s second largest shareholder with a stake of 20%, namely Chongqing Beer (Group) Co Ltd, has already agreed to commit its shares as part of Carlsberg’s tender offer. In the event that the offer is oversubscribed, the latter will acquire any remaining CBC shares held by Chongqing Beer following completion.