Selangor, July 28th, 2009 – Carlsberg Brewery Malaysia Berhad (Carlsberg Malaysia or the Company) announced that the Company has entered into a Memorandum of Understanding (MOU) with Carlsberg Breweries A/S (Carlsberg), the holding company of Carlsberg Malaysia, to acquire the entire equity interest in Carlsberg Singapore Pte Ltd (Carlsberg Singapore) for RM370 million in cash.
Carlsberg Singapore is a company incorporated in Singapore and is principally engaged in the sale and marketing of alcoholic beverages.
As Carlsberg is a major shareholder of Carlsberg Malaysia and certain directors of Carlsberg and Carlsberg Singapore are also directors in Carlsberg Malaysia, the proposed acquisition will be deemed as a related party transaction pursuant to the Listing Requirements of Bursa Malaysia Securities Berhad.
Commercial terms and details of the MOU which was released in conjunction with the announcement to Bursa Malaysia include:
(a) A 20 year licence agreement for distribution and sales of Carlsberg products in Singapore;
(b) Sourcing of Carlsberg products for Carlsberg Singapore to be manufactured by Carlsberg Malaysia instead of other FTA friendly nations in the region;
(c) Profit guarantee for Carlsberg Singapore’s financial performance for 2009 and 2010 provided by Carlsberg to Carlsberg Malaysia;
Carlsberg Malaysia in a statement commented that the proposed acquisition of Carlsberg Singapore will be subject to formal legal and financial due diligence processes.
“The proposed acquisition and expansion in the region will benefit Carlsberg Malaysia strategically as it is a good business fit, the beer market in Singapore is attractive and Carlsberg Singapore is a successful, well run and profitable company. In addition, the financial rationale for the proposed acquisition is justifiable as there are significant synergies to be realized, the investment is earnings accretive to Carlsberg Malaysia and Carlsberg Malaysia’s surplus funds are fully optimized.” commented Soren Holm Jensen, Carlsberg Malaysia’s Managing Director.