CR and China Resources Enterprise (CRE) held a joint press conference at China Resources Building in Hong Kong on the morning of April 21. Chen Lang, Deputy Managing Director of CR and Chairman of CRE, and CRE’s chief counsel Yan Biao co-chaired the press conference. Heads of CR Directors’ Office, Legal Department, Finance Department and CRE as well as more than 20 media in Hong Kong attended the conference.

At the press conference, CR proposed to acquire all of CRE’s non-bear businesses with HK$28 billion. Subject to completion of the acquisition and a capital reduction by CRE, CRE will return most of the cash proceeds to its shareholders via a special cash dividend of HK$11.50 per share. After that, CR will propose to make a pre-conditional partial offer to acquire up to 10% of CRE’s outstanding shares at HK$12.70 per share. Together with the special dividend, a total cash consideration of HK$24.20 is proposed to be received by shareholders for every share that is tendered into and accepted under the partial offer, representing approximately a 59.2% premium to CRE’s last closing price. The deal is subject to independent shareholders’ approval and the consent of several banks and third parties. CR proposed to transform CRE into a beer-focused company and will continue to provide full support to it to further consolidate its leading position in China’s market.

This acquisition implemented CR’s strategy to professionalize its business units and CRE will become a beer-focused company when the deal is completed.