Asia Pacific Breweries Limited (APBL)

Asia Pacific Breweries Ltd (APB) today announced that GDH Limited (GDH) the controlling shareholder of Kingway Brewery Holdings Limited (Kingway Brewery), has exercised its pre-emption rights to acquire from Heineken-APB (China) Pte Ltd (HAPBC), 365,767,453 ordinary shares in Kingway Brewery. HAPBC is 50% owned by APB.

GDH will acquire the shares, which represent approximately 21.37% of the issued share capital of Kingway Brewery, for RMB1.08 billion (equivalent to approximately S$205 million based on an agreed exchange rate mechanism).

Based on the latest audited consolidated accounts of HAPBC group as at 30 September 2010, the book value of the shares amounted to approximately S$119.0 million. The offer represents a gain of approximately S$76 million after deducting foreign exchange and transaction related expenses.  APB’s share of the gain from disposal will be approximately S$38 million.

The proposed transaction is subject to completion which is expected to take place within 20 business days from the date of this announcement. The Consideration will be paid in cash in USD based on an agreed exchange rate mechanism whereby fluctuations in the RMB to USD exchange rate would be borne equally by HAPBC and GDH.

A further announcement will be issued by APB upon completion.