APB

APB: sets up JV in Mongolian to make and sell vodka. APB will invest 29.1b Mongolian tugrik ($27.5m) to take a 51% stake in Mongolian Beverages Co, a JV co with Tiger's current partner in Mongolia, Grandkhaan. Grandkhaan will hold the remaining 49% in the JV co. Grandkhaan will inject its existing vodka assets into Mongolian Beverages, which will offer brands such as Grandkhaan, Chinggis, Khubilai, Xappa and Eruu, which are familiar vodka brands in Mongolia. APB said the NAV of its stake was ~ 21.9b tugrik as of Sep ‘11. APB believes its maiden investment in the spirits sector in Mongolia will enhance APB's growth in the Mongolian alcohol market. Notes while Mongolia is predominantly a vodka market, beer is increasingly gaining popularity. Highlights the diversification into vodka will add to its multi-beverage portfolio. Beyond opening channels for beer in Mongolia, the partnership will also yield opportunities to bring Mongolian vodka to the rest of the world using APB's global distribution network. APB made its first foray into Mongolia in 2007. Last year, APB's Mongolian business gained 15% in volume. The deal, which will be paid in cash from internal resources, is not expected to have any material impact on assets or earnings for the current financial year. APB trades at 23.5x P/E, offers 3.2% yield.