Johnnie Walker maker Diageo weighs options for China assets including sale, sources say
Goldman Sachs and UBS are reviewing Diageo’s operations and are sounding out interest from local strategic buyers and private equity firms
Diageo is considering options for its Chinese assets, including potential divestments, people familiar with the matter said, as the maker of Guinness and Johnnie Walker seeks to streamline its portfolio.
Diageo is working with Goldman Sachs and UBS Group to review its operations, which include a more than 63 per cent stake in Shanghai-listed Sichuan Swellfun, the people said, asking not to be identified because the information was not public. The advisers have been sounding out initial interest from local strategic buyers and private equity firms, the people said.
Shares in Sichuan Swellfun have dropped 14 per cent in the past 12 months, giving the Chengdu-based company a market value of US$2.7 billion.
Considerations are preliminary and no final decisions had been made, the people said, adding that there was no certainty that Diageo would decide to proceed with any deal.
Representatives for Diageo, Goldman Sachs and UBS declined to comment. A representative for Sichuan Swellfun said the company had not received any information about a stake sale.