China Resources Beer HK$9.5 billion rights offering

Overview:

• China’s biggest brewer, China Resources Beer, has undertaken a rights issue, issuing approximately 811 million shares at HK$11.73 apiece
• The rights issue aims to fund the purchase of the remaining 49% stake in China Resources Snow Breweries, a Chinese venture with London-based SABMiller, resulting in a full control of the Snow beer brand by China Resources Beer.
• The acquisition of SABMiller’s stake is set to commence by the end of this year, and the approval from China’s anti-monopoly regulators is still pending.
• Rothschild (Hong Kong) and China Merchants Securities (Hong Kong) are the joint financial advisors to the rights offering.
• Nomura International (Hong Kong) and UBS are the joint bookrunners.
• Nomura International (Hong Kong), UBS Hong Kong Branch, Citigroup Global Markets Asia and HSBC are the joint lead managers.
• Davis Polk & Wardwell (Paul Chow, Michael N. Sohn, William Barron, Faisal Baloch, Terrence O’Donnell) is advising China Resources Beer, while Zhong Lun Law Firm ( Michael G. DeSombre) is acting as PRC counsel. 

Wai Yee Tsang - Journalist - Asia-Pacific