08 February 2006
SABMILLER ASSOCIATE ACQUIRES FIRST CHINESE BREWERY IN FUJIAN PROVINCE
London and Johannesburg, 8 February 2006. China Resources Snow Breweries
Limited ('CR Snow'), an associate of SABMiller plc and a subsidiary of China
Resources Enterprise Limited ('CRE'), announces that it has acquired an 85%
interest in Quanzhou Qingyuan Brewery Limited ('Qingyuan Brewery') for
approximately US$8.9 million. The residual 15% is owned by Q.F.G.C. (Limited).
Quanzhou, a major coastal city in the south east province of Fujian, has a
population of over 7 million people. In 2004 Fujian Province recorded total
beer sales of 13.5 million hectolitres and annual consumption per capita of 39
litres, exceeding the national average of 23 litres. At present, CR Snow does
not have any plant in the province.
The consideration for the acquisition will be based on the appraised net asset
value of Qingyuan Brewery to be determined after due diligence, which is
expected to be approximately US$10.5 million. Qingyuan Brewery had net debt of
RMB42 million as at 30 September 2005. The annual production capacity of the
brewery is 1.2 million hectolitres and could be increased to 2.8 million
hectolitres after an upgrade for an additional investment of RMB65 million. The
major product line for Qingyuan Brewery is its 'Qingyuan' series of beer,
distributed for sale mainly in the Quanzhou area.
Mr. Andre Parker, Managing Director of SABMiller Africa & Asia, said, 'Fujian
Province is an attractive region to further build our presence in China and
expand our fast growing SNOW brand. This transaction represents a very
attractive value of under US$10 per hectolitre and is evidence of CR Snow's
continued price discipline in pursuing acquisitions in the region.'
Mr. Mark Chen, Managing Director of China Resources Enterprise, Limited said, '
The acquisition is part of our national strategy for 'SNOW' to expand into
southern China prudently. We are already selling SNOW in Fujian Province and
our cost efficiency will be enhanced in future. We will take advantage of the
edges of Quanzhou to consolidate our market position in Fujian Province and
would upgrade the existing facilities in two to three years' time. Coupled with
our greenfield plant at Dongguan, which has commenced trial runs recently, we
have built a sound platform for further expansion to neighbouring areas of
Notes to editors
SABMiller plc is one of the world's largest brewers with brewing interests or
distribution agreements in over 60 countries across five continents. The group's
brands include premium international beers such as Miller Genuine Draft, Peroni
Nastro Azzurro and Pilsner Urquell, as well as an exceptional range of market
leading local brands. Outside the USA, SABMiller plc is also one of the largest
bottlers of Coca-Cola products in the world.
In the year ended 31 March 2005, the group reported US$2,194 million pre-tax
profit and a turnover of US$14,543 million on a UK GAAP basis. SABMiller plc is
listed on the London and Johannesburg stock exchanges.
This announcement is available on the company website: www.sabmiller.com
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China Resources Snow Breweries Limited
China Resources Snow Breweries Limited was established in 1994 and is engaged in
the production, sales and marketing of beer and beverages in China. Its
shareholders are China Resources Enterprise, Limited and SABMiller plc. China
Resources Enterprise, Limited has a 51% interest in China Resources Snow
Breweries Limited while SABMiller plc holds a 49% interest. It operates about
40 breweries in the Chinese Mainland with a total sales volume of about 3.1
million kilolitres in 2004.
About China Resources Enterprise, Limited
China Resources Enterprise, Limited is listed on the Hong Kong Stock Exchange
and is also traded on SEAQ International of the London Stock Exchange. It is
also one of the constituent stocks of the Hang Seng Index in Hong Kong and Hang
Seng London Reference Index. The Group focuses on the consumer businesses in
both Hong Kong and the Chinese Mainland, with core activities being retail,
beverage, food processing and distribution, textile and property investment.
SABMiller plc Tel: +44 20 7659 0100
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Gary Leibowitz Vice President, Investor Relations Tel: +44 20 7659 0174
James Crampton Media Relations Manager Tel: +44 20 7659 0172
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