KUALA LUMPUR (July 6): Danish brewery firm Carlsberg will receive US$643 million, or about RM2.62 billion, from Japan's Sapporo Breweries for a 25% stake in a new joint venture spanning Southeast Asia and Hong Kong.
Carlsberg will hold a 75% stake and operational control of the venture that will combine its existing businesses in Malaysia, Singapore, Hong Kong, Laos, Vietnam and Cambodia. The venture will also hold perpetual exclusive rights to produce and distribute Sapporo Premium Beer across the markets.
Sapporo will also grant Carlsberg long-term licences to produce and distribute Sapporo Premium Beer in the UK and Myanmar, while both companies will explore opportunities to expand the brand into other markets in Europe and Asia, according to Carlsberg's statement on Monday.
The announcement was also filed by Carlsberg Brewery Malaysia Bhd (KL:CARLSBG) on Monday to Bursa Malaysia.
The joint venture builds on the companies' partnership to distribute Sapporo Premium Beer in Malaysia, Singapore and Hong Kong since 2024.
The partnership strengthens the group's premium beer portfolio while leveraging its distribution network across Southeast Asia and Hong Kong to grow the Sapporo brand, said Carlsberg chief executive officer Jacob Aarup-Andersen.
For Sapporo Breweries, the deal marks a key step in the brewer's international expansion strategy and lays the foundation for further collaboration in existing and new markets, said chief executive officer Hiroshi Tokimatsu.
The price tag values the joint venture at 21 times the earnings before interest and taxes in 2025 or 17 times earnings before interest, taxes, depreciation and amortisation, after adjusting for proportional ownership in the relevant markets.
The proceeds will be used to repay Carlsberg's debt and for general corporate purposes. The transaction is subject to regulatory approvals and other customary closing conditions.
Morgan Stanley & Co International plc acted as exclusive financial adviser to Carlsberg and Norton Rose Fulbright LLP served as legal counsel.
Shares of Carlsberg Malaysia closed up six sen or 0.37% to RM16.26 on Monday, giving it a market capitalisation of RM4.97 billion ahead of the announcement.