Mystery buyer taps into SABMiller

LONDON-listed SABMiller, the world's third-largest brewer, has a new partner in its partly held Chinese affiliate.

The Chinese company said today that the local authority in China had offloaded its 29% stake in Harbin Brewery Group for a deeply discounted HK$3.25 a share to the mystery group, which was connected neither with SABMiller nor the city authorities. The purchaser was not named.

The new shareholder will control almost as much of Harbin as SABMiller, which has built up a 29.4% holding in an effort to expand its reach in the world's most populous country.

Under the terms of its agreement SABMiller will transfer technical and corporate skills to Harbin. SABMiller also has two non-executive directors on the board.

Trading in Harbin shares was suspended yesterday ahead of the announcement. When they resumed today, they fell back 40c or 10% to HK$3.60 in a weaker wider market. Brewing is a fast-growing industry in China as rapid economic growth fuels a steady rise in disposable incomes.

Although the Chinese drink far less per head than their American, British or Japanese counterparts, the more populous market is expanding by as much as 25% a year. Major brewers have beaten a path to China, taking substantial minority stakes. Last December Scottish & Newcastle, the world's No 6 brewer, paid £35m for a 20% stake in Chongqing Brewery.