Carlsberg Malaysia divests 70% stake in Luen Heng for RM19.5m

KUALA LUMPUR: Carlsberg Brewery Malaysia Bhd is selling its 70% stake in Luen Heng F&B Sdn Bhd to Capriwood Sdn Bhd for RM19.5mil as it seeks to focus on its beer business.

It said on Friday the sale was to align with its parent company Carlsberg Group’s strategy to “Focus on beer as core” and to maximise the return on capital invested. 

On completion of the sale, Carlsberg Malaysia said it would exit Luen Heng, an established distributor and supplier of imported beers, wines and spirits. 

“By focusing on beer and divesting its wine and spirits businesses, the brewer will continue to sell selected imported beers by Luen Heng in order to offer the most comprehensive locally-brewed and imported range of beers to its customers and consumers. 

“The long-standing business synergies between the brewer and the distributor shall continue going forward,” it said. 

Carlsberg Malaysia said proceeds from the sale would be re-invested in its commercial activities behind its core beer brands. The brewer does not expect the sale to have a material impact on Carlsberg Malaysia’s second quarter results in the second quarter.

Carlsberg Malaysia managing director Henrik Juel Andersen said: “Carlsberg Malaysia has, over some 45 years, evolved from a beer company with one flagship brand to a brewer with dynamic portfolio of international beer, stout and cider brands. 

“To accelerate growth and intensify our focus on beer, stout and cider innovations, we recognize that it is time to prioritise on our core business and make sound investments that deliver higher return of capital investment for our shareholders,” he said.