Kirin to Acquire Brazilian Beverage Company Schincariol Group

This additional acquisition will not only enhance Kirin's governance over Schincariol as a wholly-owned subsidiary but will also help Kirin further increase the competitiveness of Schincariol in the fast-growing Brazilian market.

Nov 7 2011 --- Kirin Holdings Company, Limited has signed and completed a stock purchase agreement on November 4 to acquire all outstanding quotas of Jadangil Participações e Representações Ltda. (hereafter, "Jadangil"), a company that holds 49.54% of the outstanding shares of Schincariol Participações e Representações S.A. (Brazil; CEO: Adriano Schincariol; hereafter, "Schincariol"). Schincariol is the controlling shareholder of the Schincariol group of companies, a Brazilian beer and soft drinks producer.

As disclosed on August 2, "Kirin Consolidates Schincariol Group", Kirin acquired 50.45% of the outstanding shares of Schincariol through Aleadri-Schinni Participações e Representações S.A., and as a result of the latest transaction, Kirin now owns all the outstanding shares in Schincariol. This additional acquisition will not only enhance Kirin's governance over Schincariol as a wholly-owned subsidiary but will also help Kirin further increase the competitiveness of Schincariol in the fast-growing Brazilian market and generate synergies with Kirin, through which Kirin seeks to accelerate growth.

In addition, all parties to the precautionary measure and lawsuit have executed a settlement agreement to dismiss the precautionary measure and lawsuit (hereafter, "Settlement Agreement"). The Settlement Agreement has been lodged with the First Civil State Court of the City of Itu, and we expect the Court to ratify the Settlement Agreement by November 8.

Kirin acquired the outstanding quotas of Jadangil from three quotaholders for BRL 2.35 billion (¥105.0 billion). The stock purchase is completed on November 4. Kirin funded the transaction through cash on hand and loans.

Kirin has now reached agreements with the sellers of Aleadri and the sellers of Jadangil for the acquisition of 100% of the outstanding shares of Schincariol for the total amount of BRL 6.30 billion.

Under the "Kirin Group Vision 2015 (KV2015)," while Kirin endeavors to be a leading company in the Asia and Oceania regions and pursues a business strategy centered on these regions, Kirin is also exploring new business opportunities in other markets for its further development.

The Brazilian beer and soft drink markets are large and are expected to maintain stable growth. Kirin will seek to further enhance Schincariol Group’s operating platform and accelerate its growth by leveraging the Kirin Group's technologies, product development, research and marketing capabilities.