Home » Business » Manufacturing
Diageo gets control of distiller
Source: Bloomberg News |
June 28, 2011, Tuesday
|
Print Edition
Print Edition
DIAGEO Plc, the world's largest distiller, yesterday said it has received regulatory approval to take a majority stake in China's Sichuan Chengdu Quanxing Group as it seeks to increase its presence in Asia.
Authorities approved Diageo's purchase of a 4 percent holding in Quanxing from Chengdu Yingsheng Investment Holding Co for about 140 million yuan (US$21.6 million). Diageo will own about 53 percent of Quanxing, one of the largest makers of Chinese white spirits by volume in the country, the company said yesterday.
Diageo said it will seek approval from the China Securities Regulatory Commission to make a required bid for Shanghai-listed Sichuan Shuijingfang Co, in which Quanxing holds a 39.7 percent stake, and "expects to receive the CSRC approval in due course."
Under Chinese rules, if Diageo has control of Quanxing, it must launch a mandatory tender offer for the whole of Shuijingfang. The maximum amount payable for the rest of Shuijingfang would be about 6.3 billion yuan, London-based Diageo estimates.
Diageo said it will fund the Shuijingfang acquisition through "diversified financing sources and strong global cash generation." It has also agreed to facilitate financing for Quanxing of as much as 2 billion yuan for business development, "subject to the right opportunities becoming available."
Authorities approved Diageo's purchase of a 4 percent holding in Quanxing from Chengdu Yingsheng Investment Holding Co for about 140 million yuan (US$21.6 million). Diageo will own about 53 percent of Quanxing, one of the largest makers of Chinese white spirits by volume in the country, the company said yesterday.
Diageo said it will seek approval from the China Securities Regulatory Commission to make a required bid for Shanghai-listed Sichuan Shuijingfang Co, in which Quanxing holds a 39.7 percent stake, and "expects to receive the CSRC approval in due course."
Under Chinese rules, if Diageo has control of Quanxing, it must launch a mandatory tender offer for the whole of Shuijingfang. The maximum amount payable for the rest of Shuijingfang would be about 6.3 billion yuan, London-based Diageo estimates.
Diageo said it will fund the Shuijingfang acquisition through "diversified financing sources and strong global cash generation." It has also agreed to facilitate financing for Quanxing of as much as 2 billion yuan for business development, "subject to the right opportunities becoming available."
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
