Carlsberg settle with Chang for $120mn

31/08/05 Chang and Carlsberg have announced an amicable settlement of the matters in dispute between them, including the arbitrations in London and Bangkok. As a result of the settlement all claims in the arbitrations in London and Bangkok will be withdrawn and the parties have agreed not to pursue any further actions in respect of the matters which have formed the subject matter of the dispute between them.

The total payment by Carlsberg to Chang in connection with the apportionment of assets described is approximately US$ 120m, of which approximately US$ 40m will be included in Carlsberg's income statement for 2005 under special items. Last year, Chang announced it was suing Carlsberg for an estimated 1.75-2.0 bln usd over its decision to end the venture.

The US$ 40m covers a fair value adjustment to the purchase price of shares in Lao Brewery and those shares in Hite Brewery acquired in 2002, which according to international accounting standards (IFRS) has to be expensed in the income statement as the shares were acquired more than 12 months ago.

The remaining US$ 80m covers Carlsberg's purchase of 50% of Brewery Invest Pte Limited, which includes a 2.6% holding in Hite Brewery - and consequently Carlsberg now holds 25% of the shares in Hite Brewery - as well as a purchase of 49% of Carlsberg Brewery Hong Kong.