SABMiller Plc Announces Acquisition of Residual Interest in SABMiller Vietnam JV
Partnering with Vinamilk at the outset has benefited SABMiller significantly as a result of the local insights and knowledge shared with us. This transaction will allow us increased flexibility to implement various business initiatives in Vietnam and the Company will complement our existing beer businesses in the broader Asian region.
20/03/09 SABMiller plc announces that it has signed an agreement with its JV partner, Vietnam Dairy Products Joint Stock Company, to acquire Vinamilk's 50% interest in SABMiller Vietnam JV Company Limited. Conditions to the transaction have been fulfilled and SABMiller Asia BV is now the sole shareholder in the Company.
The Company's assets which are the subject of the transaction totalled US$31.8 million at the fiscal year end, 31st December 2008.
The Company's brewery is located in Binh Duong province and supplies the key markets of Ho Chi Minh City, Mekong Delta and Da Nang through an expanding distribution network. The beer industry in Vietnam is still relatively small with total volumes of 18.5 mhl but is expected to grow significantly. Current per capita consumption is modest and is estimated to be 21 litres per annum.
Ari Mervis, Managing Director of SABMiller Asia BV, said: "Having acquired Vinamilk's interest in the Company, we look forward to developing and expanding our interests further in the growing and attractive Vietnamese beer market. Partnering with Vinamilk at the outset has benefited SABMiller significantly as a result of the local insights and knowledge shared with us. This transaction will allow us increased flexibility to implement various business initiatives in Vietnam and the Company will complement our existing beer businesses in the broader Asian region."
Mai Kieu Lien, General Director of Vinamilk responded: "Vietnam offers exciting prospects. We have shared a mutually beneficial partnership with SABMiller in Vietnam's developing beer industry, but in the current economic environment we would like to restructure our business operation by focussing on our core business areas in order to enhance our position of strength and maximize the interests of Vinamilk's shareholders."
