HEINEKEN Asia Pacific Pty.Ltd has entered into agreements to merge its businesses in Mongolia with APU JSC, the country’s leading beverages producer of which Shunkhlai Group (SG) is the largest shareholder.
HEINEKEN will contribute its interests in its Mongolian beer and vodka businesses – MBC – into a holding company Evergreen Investments LLC (Evergreen), which will then merge with APU JSC. As part of the transaction, SG will also contribute its existing beer and vodka interests held outside of APU JSC into Evergreen. Post transaction, HEINEKEN will hold 25% in APU JSC, with SG retaining majority ownership.
The merger is approved by Mongolian Stock Exchange (MSE) in October and by Financial Regulatory Agency (FRC) on 24th November. Completion is expected to take place in Quarter 4, 2017.
Batsaikhan Purev, President of SG, said: “This investment is a huge vote of foreign investor confidence in Mongolia’s business environment and Shunkhlai Group as a local partner. Today’s development is good news for local economy and consumers across Mongolia who will see the benefit of innovations coming from the joint collaboration. Further, partnering with a world-class business, HEINEKEN, will take APU JSC to the next level as a regional player and exporter of Mongolian brands to Asian and other markets.”
Frans Eusman, President HEINEKEN Asia Pacific said: “This transaction is a significant step forward in our strategy for our operations in Mongolia. Our extensive experience from our global HEINEKEN business combined with APU’s local expertise and distribution will enable us to realize strong potential from our joint beer and vodka businesses.”
About Shunkhlai Group/ APU JSC
Shunkhlai Group is one of the leading Mongolian conglomerates established in 1993 with interests in a range of industries, including beverages, telecom and media, petroleum trading, motor vehicles and logistics, property development, and other. APU JSC is the largest beverages (vodka, beer, soft drinks, juice and dairy) company in Mongolia established in 1924 with 40 brands in its portfolio. The company has recently expanded into dairy, and it currently holds over 20 percent of the local dairy market.
HEINEKEN is the world’s most international brewer. It is the leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the Group has a powerful portfolio of more than 250 international, regional, local and specialty beers and ciders. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. It employs over 73,500 employees and operates in more than 165 breweries, malteries, cider plants and other production facilities in more than 70 countries. MBC is HEINEKEN’s joint venture business in Mongolia.