Hong Kong, Aug 27 - Tsingtao Brewery Co Ltd on Thursday said it has formed a strategic partnership under which Japan's Asahi Breweries will keep a 19.99 percent stake in the Chinese beer maker for the next five years.
The deal, meant to "enhance the profitability and competitiveness" of Tsingtao, makes China's best-known beer brand Asahi's exclusive strategic partner in the brewery business on the mainland, a statement on the Hong Kong exchange website said.
Tsingtao had previously announced a drastic cut in capital spending this year as consumption is expected to drop in a fiercely competitive market..
Asahi acquired its current stake in Tsingtao from Anheuser Busch-InBev's nearly 27 percent holdings in Tsingtao in April for $667 million. Anheuser sold its remaining 7 percent stake to Chinese private investor Chen Fashu for $235 million the following month.
Under the latest agreement, Asahi will be allowed to nominate one non-executive director and a supervisor to Tsingtao.