Acquisitions, disposals and investments during the year

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In April 2003, SABMiller’s Polish subsidiary, Kompania Piwowarska S.A. completed its acquisition of a 98.8% equity interest in Browar Dojlidy Sp z.o.o. for cash consideration of US$38 million. Subsequent purchases from minority shareholders have increased Kompania Piwowarska’s interest to 99.4%.

During May 2003, SABMiller’s Indian subsidiary, Mysore Breweries Ltd (Mysore) entered into a 50:50 joint venture with Shaw Wallace and Company Ltd pursuant to which the combined entity has taken a strong position in the Indian beer market. Certain conditions relating to the acquisition are in the process of being completed and until the transaction becomes unconditional the business will be accounted for as a fixed asset investment.

In June 2003, the group acquired a 60% interest in Birra Peroni S.p.A (Birra Peroni) for €246 million (US$299 million, including acquisition costs). SABMiller and the remaining shareholders of Birra Peroni have agreed put and call options, which, when fully exercised, will result in SABMiller increasing its shareholding in Birra Peroni to 99.36% over a three to six year period.

Also during June 2003, SABMiller made a strategic investment in the Harbin Brewery Group Ltd (Harbin), by the acquisition of a 29.6% stake in Harbin from its largest shareholder, China Enterprises Development Fund.

During June to September 2003, SABMiller Africa BV acquired a further 5.5% interest in Sechaba Brewery Holding Ltd of Botswana, bringing SABMiller’s effective stake in Sechaba to 16.8% and the effective stake in each of Botswana Breweries (Pty) Ltd and Kgalagadi Breweries (Pty) Ltd to 31.1%.

With effect from 1 December 2003, SABMiller Africa BV acquired a further 9.5% interest in Cervejas de Moçambique SARL, bringing SABMiller’s effective stake in this Mozambiquan company to 49.1% for a consideration of US$7 million.

In March 2004 the group announced the establishment of two joint ventures with its pan-African partner the Castel Group in Algeria and Morocco. The group’s direct cash investment in the joint venture businesses comprises US$25 million in Algeria and US$20 million in Morocco. Further details of these transactions are set out at note 35 to the financial statements.

Also in March 2004, the group’s associate, China Resources Breweries, Ltd (CRB), announced that it had entered into a conditional agreement with the majority shareholder of Zhejiang Qianpi Group Company Ltd (Qianjiang), the largest brewery in Zhejiang Province, to co-operate to reorganise Qianjiang and establish a joint venture company, whereby CRB will have a 70% equity interest in the company.

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