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SABMiller PLC announces offer for Harbin Brewery Group Limited

5 May 2004

SABMiller plc, one of the world’s largest brewers, has announced an offer for the entire issued share capital of Harbin Brewery Group Limited (“Harbin”) of HK$ 4.30 in cash per share. SABMiller currently owns approximately 29.4% of Harbin and this offer is conditional upon acceptances of the offer resulting in SABMiller holding more than 50% of the issued share capital.

The offer price of HK$4.30 per share represents a premium of approximately 33.3% to the price of HK$3.225 per share as quoted on Friday, 30th April, the last day before trading in Harbin’s shares was suspended. The offer price also represents a premium of approximately 23.5% and 26.0% over the weighted average price of the Company’s shares during the last thirty days and the last six months prior to the suspension of trading, of HK$3.483 and HK$3.412 respectively. Based on the audited consolidated financial statements of the Group as at and for the year ended 31st December 2003, the offer price represents a price to earnings multiple of approximately 37.7 times the fully diluted consolidated earnings per share of the Company of approximately HK$0.11 and a premium of 303.2% over the Company's net asset value per share of approximately HK$1.07.

Graham Mackay, Chief Executive of SABMiller said: “We believe this offer represents excellent value to Harbin’s shareholders and a powerful strategic fit with our existing joint venture operations in North East China. Harbin provides SABMiller with the opportunity to enhance its local brand portfolios to the benefit of consumers, and further develop our regional leadership. Moving to a majority ownership position is a natural progression in our commitment to China and its strongly growing brewing sector. Majority ownership and commitment by SABMiller will ensure a successful future for Harbin.

“The offer is fully supported by our partner, China Resources Enterprise, Limited and opens potential opportunities to explore and take advantage of further co-operation with our existing joint venture China Resources Breweries.”

SABMiller’s successful investment strategy in China spans a period of more than 10 years. SABMiller is one of the leading brewers in China, with interests in 30 breweries in North East and Central China.

Anglo Chinese is the financial advisor to SABMiller on this transaction.

Ends

Notes to editors

SABMiller plc is one of the world's largest brewers, with major brewing and distribution operations in America, Africa, Europe and Asia. It has a brewing presence in over 40 countries and some 45,000 employees. In the year ending 31 March 2003, SABMiller generated US$770 million pre-tax profit from turnover of US$9.1 billion. The company is listed on both the London and the Johannesburg stock exchanges. SABMiller, through its joint venture, China Resources Breweries, operates [30] breweries in [9] provinces in China with total volumes of over 27 million hectolitres in the year ended 31 March 2003. It entered the China market in 1994 and is one of the few profitable foreign brewers operating in China.

Contact information

SABMiller plc
Sue Clark
Director of Corporate Affairs
+ 44 20 7659 0184

Gary Leibowitz
Vice President, Investor Relations
+ 44 7717 428 540

Nigel Fairbrass
Head of Corporate Communications (Finance)
+ 44 7799 894 265

Burson-Marsteller
Katherine Khoo
+ 852 2963 6728 or + 852 9457 1746

Stephen Thomas
+ 852 2963 6705 or + 852 6194 9013

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