APU, subsidiary of Shunkhlai Group, announced that it has signed agreement with Heineken

Oyundelger 2017-07-18 04:07

Economy

The news of the agreement prompted the stock of APU to surge 9.8 percent on the Mongolian Stock Exchange.

APU, a subsidiary of Shunkhlai Group, announced that it has signed an agreement with Heineken to merge Mongolian Beverage Company (MBC) with APU. The news of the agreement prompted the stock of APU to surge 9.8 percent on the Mongolian Stock Exchange. The MBC is a beer and vodka company owned by Heineken and MCS. Heineken will contribute its interests in MBC into a holding company, Evergreen Investments LLC, which will then merge with APU JSC. As part of the transaction, Shunkhlai Group will also contribute its existing beer and vodka interests held outside of APU JSC into Evergreen. Post transaction, Heineken will hold 25 percent in APU JSC, with Shunkhlai Group retaining majority ownership. The proposed merger is subject to approval by APU JSC’s shareholders as well as regulatory agencies. Completion is expected to take place in Quarter 4, 2017. “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 the 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,” said P.Batsaikhan, president of Shunkhlai Group. “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,” added Frans Eusman, president of Heineken Asia Pacific.