Orion puts itself up for sale

Japan | Japan’s largest investment bank Nomura and US private equity firm Carlyle Group, on 23 January 2019, made a joint USD 476 million tender offer for unlisted Orion Breweries.

Orion posted USD 260 million in group sales in the year through March 2018, up 1 percent from the previous year. However, its net profit fell 17 percent to approximately USD 21 million.

The brewer, which is based in Okinawa, said its board had decided to support the takeover and recommended that shareholders offer their shares. Major shareholders include Asahi Breweries, which has a 10 percent stake. The bulk of the shares are distributed among 600 shareholders, mostly individuals.

Orion’s shareholders have until 22 March 2019 to take up the offer. Nomura and Carlyle will eventually seek a listing for Orion on the stock market, it was reported.

Orion is Japan's fifth-largest brewer with a market share of just under 1 percent. It was founded in 1957 when Okinawa was still under the control of the US military occupation government. Since Okinawa’s reversion to Japan in 1972, local breweries have enjoyed lower alcohol taxes. The tax benefit, which gave them a competitive advantage, was revoked in 2007.

In the overall market for beer and quasi-beer products, Asahi held a share of 37.6 percent in 2017, ahead of Kirin (34 percent), Suntory (16.3 percent), and Sapporo (11.2 percent).