Tsingtao’s shareholders welcome Anheuser-Busch
In January 2003, Tsingtao Brewery Co Ltd, China’s largest brewer, announced that its shareholders had approved a strategic investment to be made by Anheuser-Busch (A-B). The St Louis-based brewer and maker of Budweiser and Bud Light beers, said last October it would boost its stake in Tsingtao to 27 percent by the end of the decade. Like many other international brewers, A-B had initially entered China on the assumption it could take on the domestic brewers head on. It has since learnt the lesson that it makes greater financial sense to seek a partner in order to enhance its foothold in China, the world’s second largest beer market.
Under the deal, Tsingtao will issue convertible bonds to Anheuser-Busch in three instalments valued at around US$182 million in total..
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