Asahi sells stake in Tsingtao brewery to Fosun for $847mn

Asahi, Tokyo-based leading brewery and soft drink company, has sold its stake in Tsingtao brewery for a total value of $941mn.

It will sell 18% to Fosun for $847mn. Fosun is a Chinese international conglomerate and investment company. It was founded in Shanghai in 2004 and incorporated on HKSE in 2004.

Tsingtao was founded in 1903 and is China’s second-largest brewery. It has about a 15% share of the domestic market, and is based in Qingdao.

Asahi had a total 20% stake in Tsingtao, so the remaining 2% will go back to the brewer for about $94mn. Asahi had purchased this stake in 2009 from AB InBev for $667mn.

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The shares will be sold at HK$27.22 (US$3.48) apiece, which is a 32% discount on the closing value of HK$40 ($3.48) per share.

This is part of Fosun’s new investment portfolio strategy which centres around “wealth, health, happiness” industries. This takes advantage of the increasing goods and services market for China’s growing affluent middle class.

The deal wil be the biggest F&B investment so far for Fosun, which also recently led a consortium to buy French margarine maker St Hubert, as well as purchasing Israeli skincare brand Ahava and Greek fashion brand Folli Follie.

The deal is to close in early March.