China Resources Beer, maker of the world’s bestselling beer, Snow, is paying RMB 12.3 billion ($1.57 billion) for a 55% stake in a baijiu manufacturer based in Guizhou province, as the brewer seeks to diversify its alcoholic drinks portfolio, reports the South China Morning Post.
The Hong Kong-listed company announced on Tuesday via a filing to the stock exchange that its subsidiary CRWH has entered into an agreement with Yichang Caiyuan and Hubei Yihua, the two biggest shareholders of Guizhou Jinsha Jiaojiu Winery, to take their 4.61% equity interest in the brand, for a total of RMB 1.02 billion.
CRWH agreed to buy another 50.58% stake from two shareholders, worth RMB 11.27 billion, taking its shareholding in Guizhou Jinsha to 55.19% upon completion.