Kirin to buy over 40% stake in San Miguel

Kirin has been a long-time strategic partner of SMC through a 20% stake in the local food and beverage firm.

As beer sales continue to fall in Japan, Kirin has diversified into food and non-alcoholic beverages outside of Japan through recent acquisitions such as SMC’s investments in Australia, premium brewery J Boag, dairy and juice firm National Foods, and Australia’s Dairy Farmers Co-op.

According to a statement by the Japanese brewer, the investment will significantly contribute to Kirin’s further growth in its alcohol business in Asia and Oceania.

SMB’s beer market share in the Philippines is approximately 95%, and its parent SMC has extensive business experience in Asia, including China, Vietnam, Indonesia and Thailand.

Through the contemplated investment, Kirin is aiming to establish the strong operational base on manufacturing and sales in the Asia and Oceania markets, accelerating the creation of group synergies in alcohol business.

The details of the transaction are to be discussed by both parties. Kirin and SMC will target on signing definitive agreements by the end of February 2009.

If the price of SMB shares were to be used as a guide, then Kirin will be expected to make a payout of approximately $1.2bn for the 43.25% stake.