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Fosun buying Asahi's stake in Tsingtao Brewery for HK$6.6B


According to Market Intelligence, December 2022


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Fosun buying Asahi's stake in Tsingtao Brewery for HK$6.6B

Chinese conglomerate Fosun International Ltd. said Dec. 20 that it has agreed to acquire approximately 17.99% of Tsingtao Brewery Co. Ltd. from Japan's Asahi Group Holdings Ltd. for about HK$6.6 billion.

At a price of HK$27.22 per share, Fosun will purchase 243,108,236 Hong Kong-listed shares of the Chinese beer producer, which has a dual listing on the Shanghai Stock Exchange.

The sale price represents an approximately 31% discount to Tsingtao's last closing price of HK$39.2 on Dec. 20.

Asahi said in October that it was considering selling its entire stake in Tsingtao, representing about 19.99% of the company, as it re-evaluates its beer business in China.

Fosun is buying most of Asahi's holdings, while the Japanese group is selling the remaining 2%, which includes 27,019,600 shares, back to Tsingtao for about HK$735 million.

The transactions are expected to close in the first quarter of 2018.

Tsingtao shares were down 3.25% to HK$38.70 at midday in Hong Kong on Dec. 21.

Tsingtao Brewery, founded in 1903 by German and British merchants, recorded revenue of about US$3.5 billion and net profit of about US$276 million in the first three quarters of 2017. The company has more than 60 breweries across 20 provinces in China, producing 8 billion liters annually under brands such as Tsingtao, Laoshan and Hans.