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APB acquires Solomon Breweries

APB acquires Solomon Breweries

SGX-listed Asia Pacific Breweries (APB) said it has completed the acquisition of a 97.69 per cent stake in Solomon Breweries for S$21.5 million.

The firm said the deal is a strategic fit to APB’s expansion in the South Pacific sector as it taps on Solomon Breweries’ good track record of market leadership and profitable growth.

“The robust distribution network, popular beer brands and goodwill of Solomon Breweries immediately make APB a leader in this new market and create a new source of earnings for the group,” APB chief executive officer Roland Pirmez said in a statement.

Apart from an enhanced earnings base, Mr Pirmez said there would also be regional synergies in cost management and commercial excellence in the firm’s operations in Papua New Guinea and New Caledonia.

The only brewer in the Solomon Islands, Solomon Breweries, enjoys good market share with its SB and Solbrew Lager brands.

Beer consumption in the island stood at about 67,000 hectolitres in 2010.

The per capita consumption stood at approximately 12 litres and is expected to increase further, driven by the country’s robust economy and growing population.

APB said the acquisition will be immediately accretive to the company’s earnings, but it will not have any material impact on net tangible assets and earnings per share of the company for the current financial year.

Adapted from CNA (By: Millet Enriquez)

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