Diageo gets an OK for China spirits deal

By Yan Pei
0 Comment(s)Print E-mail China.org.cn, June 28, 2011
Adjust font size:

Diageo Highlands Holding B.V. is the producer of Guinness, Baileys and Smirnoff vodka.

Diageo Highlands Holding B.V. is the producer of Guinness, Baileys and Smirnoff vodka.

Diageo gets an OK for China spirits deal

外资控股水井坊终获批

 

UK-based liquor giant Diageo Highlands Holding B.V. has received approval from Chinese regulators to take control of a Sichuan grain-spirit maker, 16 months after the deal was first announced, China Securities Journal reported Tuesday.

China's Ministry of Commerce has approved Diageo to acquire an additional 4 percent stake in Sichuan Chengdu Quanxing Group for 140 million yuan (13 million pounds), bringing its holding to 53 percent, Diageo said Monday.

The go-ahead came as U.K. Prime Minister David Cameron met with Chinese Premier Wen Jiabao in London to discuss business cooperation between the two nations.

The deal will give Diageo indirect control of Sichuan Shuijingfang Co., a Shanghai-listed producer of baijiu, a popular Chinese liquor considered a national heritage brand off limits to Western investors.

Under Chinese laws, Diageo will need to launch a mandatory tender offer for outstanding shares of Shuijingfang.

Diageo has priced its offer at the minimum required, 21.45 yuan per share, just above Friday's closing share price of 21.22 yuan.

If the remaining 60% of Shuijingfang shareholders approve the offer, Diageo will pay up to 6.3 billion yuan (about 594 million pounds) to secure the rest of the firm. Shareholders, however, are not expected to get behind the bid at that price.

"It is not our intention to seek full control of Shuijingfang as we see benefits in working with Chinese shareholders, but we do have the resources in place to fund the bid if needed," said a Diageo spokesperson.

 

中国证券报消息,在历经16个月后,英国洋酒集团Diageo Highlands Holding B.V. 控股收购四川酒业制造集团的申请终于通过中国政府的审批。

国家商务部已批准帝亚吉欧1.4亿元(约合1300万英镑)收购四川成都全兴集团4%的股份的申请,其持有的全兴集团股权将增至53%。

而就在昨天,中国国务院总理温家宝刚刚与英国首相卡梅伦在伦敦会晤,探讨两国之间的商务合作往来。

这项交易也使帝亚吉欧成为沪市上市公司四川水井坊的间接持有者,水井坊是中国最著名的白酒品牌之一。

根据中国有关的并购规定,帝亚吉欧洋酒集团需要履行全面要约收购义务。

帝亚吉欧将其要约收购价定在最低水平,为每股21.45元人民币,水井坊上周五收于21.22元。

如果持有水井坊余下60%股权的其他股东接受此要约,帝亚吉欧将支付最多约为63亿元人民币(约合5.94亿英镑)。

“控股水井坊不是我们本意,因为我们认为和各位中国股东合作是有益的。但如需要,我们确实有财力履行全面要约收购义务。”帝亚吉欧发言人说道。

China's business press carried the story above on Tuesday.

 

Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter