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
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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