Carlsberg Sells Stake in Malawi Business
August 10 2016 - 6:01AM
Dow Jones News
By Dominic Chopping
Danish brewer Carlsberg A/S (CARL-A.KO) Wednesday announced the
sale of its stake in Carlsberg Malawi Limited to Castel Group for
an undisclosed fee, as it executes its strategy to slim down the
company and focus on core businesses.
As part of the deal, Carlsberg has signed a license agreement
allowing Carlsberg beer to continue to be produced and sold in
Malawi, it said.
"In line with Carlsberg Group's new strategy, we have evaluated
all businesses in order to focus our efforts against a narrower and
more precisely-defined set of priorities," said Graham Fewkes,
executive vice president of Asia.
Earlier this year, the brewer laid out a new strategic plan that
it hopes will position it for growth and reverse a lacklustre
earnings trend amid pressure from declining eastern European
markets and a weak ruble, in particular.
The initiatives adopted include an overhaul of its Russian
business, a focus on premium brands in big cities and an expansion
of both non-alcoholic drinks and craft beers. The company has
merged all its existing profit improvement initiatives into a new
single program, which it hopes would generate total net benefits of
1.5 billion to 2 billion Danish kroner ($225 million-$300 million)
by 2018.
Wednesday's sale of its 59% Malawi stake is pending regulatory
and corporate approval, it said.
Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
August 10, 2016 05:46 ET (09:46 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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