Slovak Republic: SABMiller buys stake in Slovakian brewer Topvar

SABMiller has purchased 48.4% of the Slovakian brewer Topvar following receipt of approval from the Slovak anti-monopoly office earlier this month, with further share purchases in the pipeline.

Under the terms of the agreement, the controlling shareholders will sell further shares to give SABMiller an increased interest in the group to at least 67% by the end of September.

The remaining shares, held by the controlling shareholders, are subject to put-and-call arrangements exercisable within 18 months of SABMiller acquiring the additional shares.

The deal to acquire Slovakia's third-largest brewery was an estimated value of $15-million (as measured by net-asset value). SABMiller already owns the country's largest brewer, Saris. The transaction was originally announced back in May 2005, and makes SABMiller the country's largest brewer by volume, ahead of Heineken.

Topvar sold 569 000 hectolitres of beer in 2004, and had a net-asset value of $15,2-million. Industry analysts said the company's enterprise value, including debt, was approximately $49-million. Topvar holds one brewery in its home town of Topolcany in western Slovakia (just over 100km from Bratislava), where it produces four different beers -- Topvar 10 Degrees Gravity, Topvar 12 Degrees Gravity, Topvar Patriot and Topvar Marina (a dark beer). It has 434 staff, and its brands are sold mainly in the western region of Slovakia.

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