Diageo raises stake in Chinese spirits firm

23rd Jul 2013 08:04

Beverages group Diageo has been given the all clear to buy up the remaining stake in SJF HoldCo, lifting its indirect holding in Chinese premium spirits maker Sichuan Shuijingfang.Chinese authorities have given their approval for Diageo to acquire the remaining 47% interest for £233m. SJF HoldCo will be converted from a joint venture into a wholly foreign-owned enterprise of Diageo's.Through this investment, the Guinness maker's stake in Shanghai-listed Sichuan Shuijingfang has been raised from 21.05% to 39.71%. Shuijingfang manufactures the well-known Chinese distilled drink, Baijiu."I am delighted to have gained approval from the Chinese authorities to acquire the rest of our Chinese partners' interest in SJF HoldCo," said Gilbert Ghostine, President of Diageo Asia Pacific."This is a milestone in the journey we began with our partners six years ago. As the controlling shareholder in Shuijingfang, Diageo will continue to work with the senior Chinese management to build Shuijingfang into the leading international Bai Jiu brand. I have every confidence in the long-term future of the Bai Jiu category in China."BC