:. Food Industry News

Categories: Mergers and Acquisitions

Asahi Breweries to Acquire All of Asahi Soft Drinks

Source: Reuters
25/10/2007

Tokyo, Oct. 25 - Asahi Breweries Ltd said on Thursday it would launch a $477 million tender offer to buy out all minority shareholders in Asahi Soft Drinks Co Ltd as it tries to expand revenues from businesses other than domestic beer, which is seeing a slowdown in sales.

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Rival Kirin Holdings Co said only a few days ago that it would begin a $2.6 billion bid for control of drug maker Kyowa Hakko Kogyo Co to boost its pharmaceutical business.

Asahi Breweries said in a statement it would be able to invest more of its group resources in its non-alcohol business by making Asahi Soft Drinks a wholly owned subsidiary.

It also said it would actively seek alliances and acquisitions in the industry.

The brewery said it would offer 2,120 yen per Asahi Soft Drinks share to raise its stake in the subsidiary to 100 percent from 51.17 percent, with the bid estimated to cost 54.42 billion yen ($477 million).

Kirin acquired all of the shares in its non-alcohol drink subsidiary through a tender offer in 2006 ahead of the brewery's shift to a holding company structure.



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