Tuesday, January 13, 2009

Uni-President China to sell 50% stake in beverage JV

Uni-President China Holdings Co Ltd<220>, the Hong Kong-listed unit of Taiwan's Uni-President Enterprises Corp, has agreed to sell a 50% stake in Beijing President Kirin Beverage Corp (Beijing Kirin) to Kirin (China) Investment Co Ltd for HK$3.6 million, said market sources.

According to a statement released by Uni-President China, the company didn't see the JV's distinct contribution to the development of its own brand as Beijing Kirin principally proceeded with its business under the brands owned by Kirin Beverage Corp.

After the transaction, Uni-President China won't hold any interest in the JV.

Proceeds of the deal will be used to replenish working capital of Uni-President China.

Beijing Kirin is engaged in provision of black tea and milk tea under the brand "Afternoon Tea" and premium can coffee drinks under the brand "Fire", as per industry sources.

Shares of Uni-President China edged down 1.85% to close at HK$2.12 on Monday.

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