Japanese brewer Kirin Holdings offering at least 2 billion reais to buy out minority investors in Brazilian beer maker Schincariol Participacoes e Representacoes

Nevin Barich

LOS ANGELES , October 4, 2011 (Industry Intelligence) – Japanese brewer Kirin Holdings Co. is offering at least 2 billion reais (US$1.08 billion) to buy out minority investors in Brazilian beer maker Schincariol Participacoes e Representacoes, Bloomberg reported Sept. 30.

According to a person with knowledge of the process, the plan is to offer minority shareholders a per-share price that’s near what Kirin agreed to pay the sons of the founder: majority holders Adriano and Alexandre Schincariol.

A deal would give Kirin a foothold in Latin America’s largest beer market. However, . Jose Augusto Schincariol, Daniela Schincariol and Gilberto Schincariol Junior -- who own the rest of Schincariol -- have sued to block Kirin’s purchase, saying they have the right of first refusal on Aleadri-Schinni’s holdings.

As part of the transaction, Kirin would assume half of Schincariol’s 1.1 billion reais in debt. Kirin is still negotiating with minority and majority shareholders over who would assume Schincariol’s labor, legal and tax liabilities, which stood at 2.1 billion reais at the end of 2010.

The primary source of this article is Bloomberg, New York, New York, on Sept. 30, 2011.

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