8/9/2000 13:45 

A cooperation agreement has been reached between the Chinese brewery China Tsingtao Brewery Co. Ltd. (Tsingtao) and the 51% Carlsberg owned Carlsberg Brewery Hong Kong Ltd. (CBHK). The agreement is subject to government approvals, which are expected in October this year.

The agreement entails, among other things, that Tsingtao will take over a 75% shareholding in Carlsberg Brewery (Shanghai) Limited (CBS), which is 95% owned by CBHK and 5% by a local partner. The 5% will be acquired by CBHK. The purchase price for the 75% shareholding in CBS is RMB 154m (DKK 154m).

The joint venture will also include cooperation in markets in China as well as markets outside China.

The remaining 25% shareholding in CBS will in due course be transferred from CBHK to Carlsberg A/S for the amount of RMB 51m (DKK 51m).

CBHK will continue to produce beer in the Chinese market at the brewery in Guangdong, and the new joint venture will lead to improved capacity utilization.

The new joint venture entails that Carlsberg A/S will write down the total assets of the Chinese activities in the accounts. However, it will also create substantial yearly savings.

At present, the agreement does not affect expectations to the results of Carlsberg A/S for the current year.

Michael C. Iuul, CEO of Carlsberg International A/S said:
- The establishment of this joint venture cooperation between Carlsberg and Tsingtao ensures an optimal utilization of our brewery operation in Shanghai and creates very interesting opportunities for cooperation both within and outside China.

Contact: Phone +45 3327 3327
President and Chief Executive Officer,
Flemming Lindeløv
Group Managing Director, Jørn P. Jensen