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The
owner of Snow, the world's biggest selling beer brand by volume,
made the announcement on Wednesday after which its shares fell
to a two-and-a-half-month low.
The state-backed brewer plans to issue around 811 million new
shares at HK$11.73 for each share held. That would represent a
30.76 percent discount to Tuesday's closing price.
China Resources Beer said CRH Beer, its controlling shareholder
with a 51.67 percent stake, will take up its entitlement.
The brewer agreed in March to buy London-based SABMiller's 49
percent stake in their CR Snow joint venture for $1.6 billion.
China Resources Beer later said it had no plans to sell a stake
in the venture but was open to partnership and acquisitions
opportunities.
"The beer market will be further consolidated over the medium
term, and the beer business will continue to become stronger
through both organic expansion and acquisitions," Chairman Chen
Lang said in a statement.
The brewer will also use proceeds from the rights issue to fund
expansion. It is well-positioned to capture any development and
expansion opportunities, but has not identified any specific
investment or acquisition opportunities, Chen said.
On Wednesday, shares of China Resources Beer fell as much as 4.4
percent to HK$16.20, the lowest since April 22, compared with a
2 percent fall in the benchmark index. By 0310 GMT, the stock
was down 3.8 percent at HK$16.38 and was heading for its biggest
daily percentage decline since January.
The brewer's net loss widened to nearly HK$4 billion ($516
million) last year from HK$161 million in 2014 due to losses in
non-beer businesses hit by a slowing economy.
(Reporting by Donny Kwok; Editing by Edwina Gibbs and
Christopher Cushing)
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