CHINA Strategic Investment (CSI) is selling 75 per cent of its stake in a beer subsidiary to two major Japanese companies for US$35 million in a move to raise the international profile of its mainland beer business.
Under a deal to be finalised at the end of the month, Asahi Breweries will have a 45 per cent stake and Itochu Corp 30 per cent, giving the new partners not only a controlling stake but also management rights in three of CSI Brewery's mainland breweries.
The money from the Japanese buyers will go into capital investment and technology transfers for licensed production of Asahi beer, reportedly the second most popular brand in Japan.
Asahi and Itochu, a trading company, intend to double production at the three breweries in Zhejiang and Fujian provinces to 600 million litres by 1996, with the aim of becoming the largest brewing group on the mainland.
''The licensing agreement with Asahi would add more credibility to our brand names,'' said a CSI spokeswoman yesterday.
The latest deal means that the CSI will retain control over its breweries in Shandong province and Beijing.
Originally, CSI chairman Oei Hong Leong was to form China Brewery Holdings to put all its mainland breweries under one holding company with the eventual aim of listing it in New York.
