Denmark's Carlsberg completes transaction in which it increased its shareholding in China's Chongqing Brewery from 17.46% to 29.71%; company now Chongqing's largest shareholder

Graziela Medina Shepnick

COPENHAGEN, Denmark , December 27, 2010 (press release) – On 10 June 2010, the Carlsberg Group announced that it had agreed, subject to certain conditions, to increase its shareholding in Chongqing Brewery Co. Ltd from 17.46% to 29.71%, thereby becoming the largest shareholder in Chongqing Brewery Co. Ltd. The transaction has now been completed, as the Carlsberg Group has been through all the necessary steps and received all the required approvals.

Since 2008, Carlsberg has established a constructive relationship with both Chongqing Brewery Co. Ltd and its main shareholder, Chongqing Beer (Group) Co. Ltd. Following the completion of the transaction, the parties will continue to work together to explore opportunities for increased cooperation, including further sharing of best practices and the development of Shancheng, which is the leading brand in the markets in which Chongqing Brewery operates.

CEO Jørgen Buhl Rasmussen comments, "We are very pleased with the cooperation we have had with Chongqing Brewery and its main shareholder since 2008. We have been actively involved with Chongqing Brewery and are very excited about the possibilities for further development arising from the transaction. The transaction is in line with Carlsberg's strategy of strengthening our presence and building a platform for long-term growth in Asia".

Chongqing Brewery Co. Ltd facts

Chongqing Brewery Co. Ltd is listed on the Shanghai Stock Exchange, with the Carlsberg Group and Chongqing Beer (Group) Co. Ltd as its two largest shareholders. Following the transaction, the Carlsberg Group and Chongqing Beer (Group) Co. Ltd will own 29.71% and 20%, respectively, of Chongqing Brewery Co. Ltd.

Chongqing Brewery Co. Ltd operates 16 breweries in Chongqing and the surrounding provinces of Sichuan, Hunan, Anhui and Zhejiang.

In 2009, Chongqing Brewery Co. Ltd's Chinese beer volumes were approximately 10m hl. The Shancheng brand family, which is largely focused in the mainstream market segment, accounts for the majority of Chongqing Brewery Co. Ltd’s volumes. The Shancheng brand has a long-standing regional heritage and is accorded “China Famous Brand” status by the Chinese Government.

In addition to the brewery activities, Chongqing Brewery Co. Ltd owns 85% of a biotech business involved in biopharmaceutical research, development and production. The company is currently carrying out a phase II study for its hepatitis B vaccine.

The Carlsberg Group China facts

The Carlsberg Group operates 19 breweries in China. In 2009 the Group's pro-rata Chinese volumes were approximately 9m hl. The Carlsberg Group holds strong market positions in Western China. In addition the Group holds a number two position in the international premium segment with the Carlsberg brand portfolio.

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