Carlsberg in joint venture with Singapore-based beverage company

Carlsberg in joint venture with Singapore-based beverage company

COPENHAGEN (Reuters): Danish brewery group Carlsberg said on
Friday it signed a joint venture agreement with Singapore-based
Chang Beverage Company to form Carlsberg Asia Ltd, a 50-50 joint
venture.

"The joint venture will administrate and develop the two
companies' marketing and brewing activities in the Asia region,"
Carlsberg said.

Chang Brewery Company is an investor in breweries and
distilleries in Asia and the Danish brewer is to funnel all its
Asian activities into the new joint venture operation.

Carlsberg Asia is expected to have net turnover of
approximately $770 million in its first year operation, with net
profit seen at around $100 million in 2001, it said.

Through its own breweries and licensed operations, Carlsberg
Asia plans to brew 17 million hectolitres of beer in its first
year of operation, with Carlsberg beer accounting for two million
liters of the total.

"Carlsberg has a long tradition of involvement in the region,"
Carlsberg group managing director Michael Iuul said.

"Historically there have been only a few Asian markets with
significant beer consumption but today the situation is changing.
Asia is the fastest growing beer market in the world".

Carlsberg Asia's two biggest markets are seen as Thailand and
South Korea. Carlsberg beers are brewed by company breweries or
licensees in 12 countries in Far-East Asia.

The new company is to be established on January 1, 2001 with
head office in Singapore and nominal share capital of $400
million.

Carlsberg and Chang intend to float Carlsberg Asia within
three to four years.

In connection with the formation of Carlsberg Asia, Carlsberg
is to sell its 10 percent interest in Thai Breweries for $147
million.