BELARUS NEWS AND ANALYSIS

DATE:

28/12/2007

Heineken buys Belarus' Syabar Brewing Co

AMSTERDAM (Thomson Financial) - Heineken NV said it is buying the Syabar Brewing Company in Belarus for an undisclosed sum.

Heineken will acquire Syabar's Cypriot parent company from a consortium led by Detroit Investments Limited (Cyprus) from the International Finance Corporation, an affiliate of the World Bank.

Heineken said the transaction will be funded from existing cash resources and will be earnings enhancing in 2008 and value enhancing in 2012.

Heineken said the Belarus beer market is showing double-digit growth, with annual consumption at almost 4.5 mln hectolitres and estimated per capita consumption at 45 litres.

The Syabar Brewing Company has been operational since October 2005 following the reconstruction of a state owned brewery and employs 280 staff.

The company produces the brand Bobrov, number two in the Belarus market, and the recently introduced premium brand Syabar.

Sales volume in 2007 is estimated at 600,000 hectolitres, compared to 370,000 hectolitres in 2006, with the technical production capacity at 1.1 mln hectolitres with the possibility of going up to 2.1 mln hectolitres.

Source:

http://www.forbes.com/markets/feeds/afx/2007/12/28/afx4478644.html