Carlsberg to acquire remaining 33% stake in Carlsberg South Asia from partner in USD 744-million deal

Danish brewing major Carlsberg has said it will acquire the remaining 33.33 per cent stake in Carlsberg South Asia Pte. Ltd. (CSAPL) from its partner CSAPL (Singapore) Holdings Pte. Ltd in a deal valued at USD 744 million. CSAPL is the holding company for the Carlsberg's businesses in India (100 per cent) and Nepal (90 per cent), through its shareholding in Gorkha Brewery Private Limited (GBPL).

CSAPL Holding's 33.3 per cent shares is under the control of Singapore resident C P Khetan, with whom the company was having disputes.



"Carlsberg has signed an agreement to acquire the remaining 33.33 per cent shareholding in CSAPL from our partner CSAPL (Singapore) Holdings," said a statement by the brewing major.

In addition, as part of this transaction, CSAPL has entered into an agreement to acquire a further 9.94 per cent of the shares in GBPL.

"Following completion of the proposed transactions, Carlsberg will own 100 per cent of the existing business in India and, through CSAPL's shareholding in GBPL, 99.94 per cent of the existing business in Nepal," it said.

The total purchase price for the proposed transactions amounts to USD 744 million, which is subject to adjustments pursuant to the transaction documents, it added.


"Of the USD 744 million, USD 207 million will be retained by Carlsberg and will be released dependent on potential claims under the SPA (likely after 3-5 years)," the statement

Carlsberg Group CEO Jacob Aarup-Andersen said, "We are pleased that we've been able to reach an amicable agreement with our partner and achieve full control of two important Asian businesses.

"Growing in India is a key priority in our Accelerate SAIL strategy, and we can now accelerate investments to capture the long-term growth opportunities in this exciting beer market," he added.

Carlsberg, which also owns the brand Tuborg, is the third-largest brewer in India. The Group had commenced operations in India in 2007.


"The proposed transactions are expected to be completed in Q4 2024, subject to the satisfaction of certain conditions to completion," it said, adding, "such conditions include, but are not limited to, deal-specific conditions as well as the requirement to obtain certain governmental approvals in respect of the proposed transactions in Nepal."

It further added the acquisition of the remaining shareholding in CSAPL will have no impact on the consolidation of CSAPL and CIPL in the Group accounts, having been fully consolidated historically.

"The Nepalese business, held through CSAPL's shareholding in GBPL, is currently, due to lack of control, accounted for as an associated company in the Group's accounts, but will be fully consolidated following completion of the acquisition by CSAPL of an additional 9.94 per cent of the shares in GBPL," it said.