Asahi Promises Not to Hold Over 19.99% of Tsingtao Brewery

Japanese beer maker Asahi Breweries Ltd. promises to control not more than 19.99% of its holding company in China, Tsingtao Brewery Co. Ltd. (SEHK: 0168; SHSE: 600600), unless it gets the written approval to do so.

Yesterday, both sides entered into a strategic cooperation agreement.

The promise of Asahi Breweries comes at a time when the public is worried that Asahi Breweries could take the controlling share of Tsingtao Brewery.

Now Asahi Breweries is holding a 19.99% stake in Tsingtao Brewery, while Qingdao Beer Group Company is taking 31.41%.

Asahi Breweries also promises that Tsingtao Brewery will be its exclusive strategic partner in the beer market for China. And it has the right to elevate a non-executive director and a supervisor to the board of directors and the board of supervisors.

In terms of the agreement, Asahi Breweries will not be allowed to sell its holdings in Tsingtao Brewery in the coming five years, excluding to its wholly-owned subsidiaries.

Source: www.cnstock.com (August 28, 2009)

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