Asahi Group Holdings Ltd. agreed to place its stake in Tsingtao Brewery Co. back into Chinese hands, selling its holding to conglomerate Fosun Group and the local brewer for about $941 million.
Asahi is selling its 20 percent holding in China's third-largest brewer for $27.22 Hong Kong dollars a share, the Japanese company said in a statement Wednesday. That's a 32 percent discount to today's closing price of HK$40 a share. Fosun will pay about $847 million for an 18 percent stake while Tsingtao will pay approximately $94 million for the rest.
Fosun has been centering its investment portfolio around what it calls "wealth, health, happiness" industries that provide goods and services for Chinese middle-class families. The Tsingtao deal marks the biggest investment in food and beverage for Fosun, after being at the center of a government crackdown on offshore acquisitions that sought to reduce leverage and risk in the country's financial system.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.