The Tsingtao Brewery announced it will use the
proceeds raised from Anheuser-Busch, which is
raising its stake in China's largest brewer to 27%
from 4.5% over the next seven years, to upgrade
existing plants and acquire more local breweries.
"We will use
the money to improve our existing plants, upgrade
our technology, build new factories and acquire
more local breweries," said acting Tsingtao
spokesman Zhang Ruixiang.
Zhang gave no
specifics on the company's acquisition plans.
On Monday, Tsingtao
signed an agreement with the world's largest
brewer in which it will issue convertible bonds to
Anheuser-Busch in three installments valued at a
total of about $182 million.
The stake will be
held in the form of H common shares listed on the
Hong Kong Stock Exchange.
Zhang also denied
reports that Tsingtao will buy breweries in the
United States. "We're not looking at any
foreign acquisition," he said.
Tsingtao has a
12.8% share of the domestic market, and has seen
exports increase 100% in the first eight months of
the year. Sales to Europe and the US have risen
10% over this period.
"Our U.S.
exports are around one million boxes a year. It's
very small," Zhang said.
State-controlled
Tsingtao has embarked on an aggressive acquisition
strategy that has seen its number of plants grow
from four breweries in its home province of
Qingdao in 1994 to the current 46 plants all over
China.
>> Tsingtao
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News - Tsingtao Brewery expands
