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.

"The company has also sought to continuously enhance corporate value through business portfolio restructuring."

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.