BANGKOK, Nov. 23 --Xinhua-PRNewswire-AsiaNet/InfoQuest
The Thai Life Group signed an agreement yesterday with Ginebra San Miguel, Inc., a listed subsidiary of San Miguel Corporation, to form a new joint
venture distillery business for the Thai market.
The joint venture will be formed through an acquisition of a 40 per cent stake in C.N.T. Wine and Liquor Co., Ltd, a subsidiary of the Thai life Group which owns a license to build and operate a distillery in Amphur Thamuang,
Kanchanaburi in the West of Thailand. The facility is now under construction
and is expected to be completed in 2006. Upon completion of the transaction,
the Thai Life Group will control 50 per cent of the joint venture, San Miguel
Corporation will own 40 per cent and the remaining 10 per cent will be owned by
minority investors. The distillery will have nationwide distribution.
ING Corporate Finance provided local and regional financial advice to the Thai Life Group from Bangkok, Hong Kong and Manila. Devonshire Capital
provided local financial advisory support.
The joint venture will allow Thai Life Group to diversify its activities into the alcoholic beverage industry from its current leading position in the premium beer market. The group currently owns a majority of Thai Asia Pacific Brewery Co., Ltd., a manufacturer and distributor of Heineken and Tiger beer. Heineken currently has over 85 per cent market share of the premium beer segment. The group expects that the new joint venture with San Miguel
Corporation will provide access to the large and growing Thai liquor market
with a size of approximately 800 million liters a year. With strong shareholders, the new venture will be able to take advantage of several
synergies including technical expertise and product development from San Miguel
and local knowledge and distribution from the Thai Life Group. Thailand's
liquor market is expected to grow by five per cent per year of which over 70
per cent will be dominated by the local spirits market.
The Thai Life Group's business activities currently encompass three core areas including insurance, alcoholic beverages and hotel and property
investment. The group is the leading local player in the Thai insurance market. In addition, the Thai Life Group has successful joint venture operations with the Cardif Insurance Group and the Accor Group.
San Miguel Corporation is the largest consumer product manufacturer and distributor in the Philippines. The group's business portfolio ranges from
beer, liquor, non-alcoholic beverages, food, agribusiness, packaging and real
estate. Alcoholic beverages, mainly beer and liquor, represent over 33 per
cent of the group's sales revenue of P150,000 million (US$2.7 billion).
In the liquor segment, San Miguel controls approximately 50 per cent of the Philippines' liquor market through its subsidiary, Ginebra San Miguel, which is a unit that produces gin and rum. Its leading brands in liquor include Ginebra San Miguel, Grand Matador Brandy and Vino Kulafu. The group has pursued an aggressive expansion strategy throughout the region including Thailand,
Vietnam, and Australia. In Thailand, the group recently made major investments
including an acquisition of Thai Amarit Brewery in April 2004 and the establishment of a venture in Rayong Industrial Estate in August 2004 which
will involve the manufacture and distribution of non-alcoholic beverages,
processed food and feed mills.
Contact:
Mr. Winyou Chaiyawan
Thai Life Group
Tel: +662-246-9738
Stephen Briones
ING Corporate Finance
Tel: +662-263-3200
SOURCE: Thai Life Group
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