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Budweiser buys 29% of China's Harbin Brewery

By Alan Fein - Senior Staff Reporter

Private Equity Fund Of Funds Anheuser-Busch has agreed to acquire 29% of Harbin Brewery Group Limited, a leading brewer in China, through a purchase of Global Conduit Holdings Limited, an investment holding company.

by Dave Porter A syndicate of seven private equity investment banking firms have agreed to buy SunGard Data Systems for $11.3 billion, the largest buyout of a public company since 1989. If you would like to receive late breaking business news covered by AXcess News then you need to subscribe. Membership is free. Print This Page March 28, 2005 (AXcess News) A syndicate of seven private equity investment banking firms have agreed to buy SunGard Data Systems ( SDS) for $11.3 billion, the largest buyout of a public company since 1989.

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The amount of debt versus underlying asset value. This leads to the term "Leveraged Buy Out" (LBO) where debt is used to buy a company. This strategy is popular with Private Equity houses, splitting commentators into two separate camps. Supporters believe it forces the object of the LBO to behave more efficiently to pay off its debt, thus maximising investor value. sayers believe it is capitalism at its worst leading to asset stripping, like heads of the Private Equity houses.

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Capital Casebook Equity May 2, 2004 (AXcess News) Anheuser-Busch (NYSE: BUD) has agreed to acquire approximately 29 percent of Harbin Brewery Group Limited (HKSE 0249.HK), a leading brewer in China, through a purchase of Global Conduit Holdings Limited, an investment holding company.

FF&P Private Equity provides its clients with the opportunity to invest in the equity of high growth, unquoted companies whose objective is to generate attractive returns through the subsequent listing, or trade sale, of these companies. FF&P Private Equity invests typically â5 million to â25 million of equity per transaction and places particular emphasis on backing commercial managers with a track record in successful execution of business plans and enhancing shareholder value. //www.ffandp. equity.

Private Investment In Public The total consideration is HK$1.08 billion (US$139 million), or the equivalent of HK$3.70 per share.As one of the oldest brewers in China, Harbin has a leading position in Northeast China and produces the Hapi beer brand. The brewer is the fourth largest in China.

Viridian, the holding company for Northern Ireland's electricity, is in talks over a .62billion bid by Bahraini private equity firm Arcapita Bank.

Equity Mutual Funds The U.S. firm's next biggest rival SABMiller Plc (LSE: SAB.L) already has a 29.4 percent stake in Harbin but no one was immediately available to comment on how the two might cooperate as co-shareholders in the Chinese brewer."Harbin fits our strategy of investing in leading companies in growth markets like China with good volume and profit growth potential," said Patrick Stokes, president and chief executive officer of Anheuser-Busch Cos., Inc. "We look forward to working closely with Harbin management and believe this cooperation will allow us to better participate in the long-term growth of the industry in China."

Birmingham Contact Equity This is Anheuser-Busch's second investment in a leading brewer in China. Since 1993, Anheuser-Busch has been a minority investor in Tsingtao Brewery Co., Ltd. In 2002, the two companies announced a strategic alliance and initiated a best practices exchange program and other management initiatives. Anheuser-Busch currently owns 9.9 percent of Tsingtao, and has an agreement to increase the ownership to 27 percent over the next several years.

Private Equity Investment Firm "This investment complements our successful Budweiser operations in China and our strategic partnership with Tsingtao," said Stephen J. Burrows, chief executive officer and president, Anheuser-Busch International, Inc. "Tsingtao is supportive of Anheuser-Busch's investment in Harbin and agrees it will be beneficial for all parties. We look forward to further contributing to the growth and development of the China brewing industry."

Complying Deal Equity Funds Based in St. Louis, Anheuser-Busch is the leading U.S. brewer. In addition to Tsingtao, Anheuser-Busch equity investments include a 50 percent share in Grupo Modelo, Mexico's leading brewer.

Equity Msn Private Wyoming Foreign brewers are moving quickly to gain a share of the growing Chinese market, forecast to grow at between five and eight percent annually.

American Equity Investment Earlier this year Heineken N.V. paid $71 million for a 21 percent stake in China's 12th largest brewer Guangdong Brewery Holdings (HKSE: 0124.HK).Lanzhou Huanghe Enterprise Co Ltd (Shenzhen: 000929.SZ) had struck a $60 million beer-making joint venture with Carlsberg, the world's sixth-largest brewer. Britain's Scottish & Newcastle (LSE: SCTN.L) last year secured a fifth of China's third biggest brewer Chongqing Brewery Co Ltd (Shanghai: 600132.SS).

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