Japan & Australia: Kirin would like to raise stake in Lion Nathan
Japan’s Kirin Brewery Co. said it wants to raise its stake in Australia's second-largest brewer, Lion Nathan Ltd. , from the current 46 %, according to the company’s statement to Reuters, as of March 9.
Lion Nathan has been a profit driver for Kirin, which faces intensifying competition with rival Asahi Breweries Ltd.in a shrinking domestic market. Kirin is still waiting for a chance to increase its stake, but no timing for such a move has been set, incoming Kirin President Kazuyasu Kato, told Reuters in an interview.
Kato, who is currently managing director in change of the company's sales division, also reiterated that the company wanted to invest more in San Miguel Corp. , Southeast Asia's largest food and drinks group, in which Kirin holds 20 %.
"Their business is attractive, and we would consider raising the stake when the time is right," he said. But he added: "We do not intend to launch a hostile takeover. We respect their management, we do no intend to change the current management or raise a stake 'at all costs'."
Kato also said Kirin Brewery's sales and profits so far in 2006 have exceeded its forecast thanks to strong demand for its low-malt happoshu and cheaper beer-like drinks. Kirin expects to post 4.7 % growth in its consolidated operating profit this year to 117 billion yen ($993.4 million) on sales of 1.67 trillion yen, which would be up 2.3 % from a year earlier.
The market consensus operating profit projection is higher at 118.15 billion yen, according to a poll of 10 analysts by Reuters Estimates.
Torna
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