Asahi Sale Of Stake In Tsingtao: Not A Good Deal For Investors

The Financial Times says investors in Chinese brewery Tsingtao and Japan’s Asahi will be disappointed that Asahi sold its near 20 percent stake in Tsingtao at a third below its closing price on December 21 to Chinese investment group Fosun. Investors had been monitoring the possible sale of Asahi’s stake, and were excited when Carlsberg had indicated interest. Carlsberg would probably have paid more for the stake because of the possible synergies, and would have created China’s second largest brewer with a quarter of the market. Fosun, on the other hand, is not likely to improve Tsingtao’s fortunes, and should have paid more for the stock.