BRIEF-Heineken And China Resources Sign Non-Binding Agreements To Join Forces In China
Aug 2 (Reuters) - Heineken Nv:
* HEINEKEN AND CHINA RESOURCES SIGN NON-BINDING AGREEMENTS TO JOIN FORCES IN CHINA
* UNDER STRATEGIC PARTNERSHIP AGREEMENT, HEINEKEN WILL BE CRE'S EXCLUSIVE PARTNER FOR INTERNATIONAL PREMIUM LAGER BEERS IN CHINA
* AS PART OF STRATEGIC PARTNERSHIP, HEINEKEN CHINA'S CURRENT OPERATIONS WILL BE COMBINED WITH CR BEER'S OPERATIONS
* HEINEKEN WILL LICENSE HEINEKEN® BRAND IN CHINA TO CR BEER ON A LONG-TERM BASIS
* IN CONTEXT OF THIS PARTNERSHIP, HEINEKEN WILL BECOME CRE'S 40% MINORITY PARTNER IN HOLDING COMPANY CRH (BEER) LIMITED
* WILL CONTRIBUTE ITS OPERATING ENTITIES IN CHINA, INCLUDING THREE BREWERIES, INTO CR BEER FOR HK$2.4 BILLION, THROUGH SHARE SALE TRANSACTION
* HEINEKEN WILL ACQUIRE A SHAREHOLDING OF 40% IN CBL AND CRE WILL OWN OTHER 60% IN CBL
* HEINEKEN WILL INVEST A TOTAL AMOUNT OF HK$24.3 BILLION IN CBL, WHICH TRANSLATES INTO AN IMPLIED PURCHASE PRICE OF HK$36.31 PER SHARE IN CR BEER
* UNDER STRATEGIC PARTNERSHIP AGREEMENT, HEINEKEN WILL BE CRE'S EXCLUSIVE PARTNER FOR INTERNATIONAL PREMIUM LAGER BEERS IN CHINA
* TRANSACTION WILL BE IMMEDIATELY ACCRETIVE TO MARGINS AND ACCRETIVE TO EPS IN THE NEAR TERM
* CRE WILL BUY 5.2 MILLION HEINEKEN N.V. SHARES WHICH ARE CURRENTLY HELD IN TREASURY FOR A TOTAL CONSIDERATION OF EUR 464 MILLION OR EUR 88.66 PER SHARE
* PARTNERSHIP WILL BE GOVERNED BY A SHAREHOLDERS AGREEMENT
* HEINEKEN AND CR BEER WILL ENTER INTO A TRADEMARK LICENSE AGREEMENT (TMLA) FOR HEINEKEN BRAND IN CHINA
* SAYS COMBINED TRANSACTIONS WILL RESULT IN A NET INVESTMENT OF EUR 1,948 MILLION (AT CURRENT EXCHANGE RATES) BY HEINEKEN. Source text for Eikon: Further company coverage:
