F&N: Sale of Heineken-APB China (HAPBC) to China Resources Snow Breweries (CRSB) will not take place as originally intended. Co will reserve the right to take legal action against CRSB. CRSB terminated the sale agreement due to the court summons stated below.
Co will make a provision of $27m for the impairment against Heineken-APB in relation to a court summons by Jiangsu Dafuhao Breweries (DFH). DFH is 49% owned by HAPBC and 51 % owned by Nantong Fuhao Alcohol Industry Co (NAC).
Separately, HAPBC has also initiated arbitration against NAC at the China International Economic and Trade Arbitration Commission in Beijing and is claiming against NAC for various breaches of the JV agreement regarding DFH.
Co also announced the proposed privatization of its China subsidiary last week.
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