On July 6, China Resources Beer (“CRB”, 00291) announced the launch of a fully-underwritten rights issue to raise approximately HK$9.5 billion before expenses. This comprises 811,044,226 rights shares (“Rights Shares”) on the basis of one Rights Share for every three existing shares, at the subscription price of HK$11.73 (“Rights Issue”). The underwriter is CRH (Beer) Limited (“CRH Beer”), a controlling shareholder of the CRB and a wholly-owned subsidiary of China Resources (Holdings) Company Limited, which has also undertaken to the Company that it will fully take up its entitlement to the Rights Shares. The net proceeds will be used to partially fund the proposed acquisition of the 49% stake in China Resources Snow Breweries held by SABMiller Asia Limited, as well as for working capital and other general corporate purposes.

The Rights Issue aims to strengthen CRB’s capital base and provide more flexibility to capture future development and expansion opportunities in its beer business.

China's beer market demonstrates tremendous growth potential with further consolidation ahead. CRB is confident and positive about the long-term development. As such, CRB considers the Rights Issue to be in the best interests of the Company and its shareholders as a whole.