Kirin Holdings said on Wednesday that it has agreed to sell its entire 40% stake in its Chinese joint venture (JV) for about $1 billion.
The Japanese beverage company said it plans to sell the stake in the soft drink JV to Plateau Consumer, a Cayman Islands-based unit of Plateau Consumer Fund.
Kirin agreed to establish the soft drinks JV with China Resources, which operates retail, beer, food and soft drink businesses in China, in 2011.
“Kirin has entered into an agreement to transfer its equity interest in CR Kirin to Plateau after careful consideration, including from the perspective of balance sheet portfolio management as set forth in the 2022 Medium-Term Business Plan,” the company said in a statement.
Under the business plan, Kirin seeks to increase profit in food and beverages domain, strengthen the operating base of the pharmaceuticals domain and scale up the health science domain.
“Kirin Holdings aims to increase corporate value through growth in the three domains by concentrating … management resources through strengthening portfolio management and clarifying investment priorities,” the company said in a statement this week outlining the plan.
The Japanese company would book a gain of about 39 billion yen ($337 million) from the stake sale.
Kirin said the sale is part of its business portfolio review and that its business tie-up in China with China Resources Enterprise, its JV partner, would continue.
“The business alliance including intellectual property licensing with China Resources Group for soft drink business in China will continue,” Kirin said.
- George Russell.
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