Asahi Group sells 20% stake in Tingyi-Asahi Beverages for $612m
Global beer, spirits, and soft drinks company Asahi Group has signed a contract to sell a remaining 20% stake in China’s Tingyi-Asahi Beverages to its joint venture (JV) partner Tingyi for $612m.
The entire stake is held by Asahi’s wholly-owned subsidiary AI Beverage Holdings. Under the terms of the transaction, Tingyi will acquire the company in two tranches: the first in December next year and the second in December 2019.
Last year, Asahi divested 10% of its stake to its JV partners. The latest sale is said to be in line with the company’s long-term vision of becoming a comprehensive beverage and food business group, with the alcoholic beverages business at its core.
Asahi said in a statement: “At the same time, the company has also sought to continuously enhance corporate value through business portfolio restructuring with a focus on asset efficiency.
“To this end, the company has reexamined its investment in equity-method affiliate TAB and decided to sell its entire equity stake.”
The company plans to redirect proceeds from the sale to other foreign investments, Reuters reported.