China Resources Beer at 5-1/2-month low on deal to buy baijiu spirit maker

China Resources Beer Holdings Co

26/10/2022 03:08

** Shares of China Resources Beer Holdings  0291.HK  drop as
much as 9.4% to HK$40, the lowest since May 10
    ** Stock marks biggest intraday pct decline since May 6;
biggest pct loser in Hang Seng China Enterprises Index  .HSCE 
and is second-biggest pct loser in Hang Seng Index  .HSI  
    ** China Resources Beer said on Tuesday its unit agreed to
acquire a 55.19% stake in Chinese "baijiu" liquor maker Guizhou
Jinsha Jiaojiu Winery Industry for about $1.7 bln, as it
diversifies alcohol businesses with non-beer assets  urn:newsml:reuters.com:*:nL4N31Q2H8
    ** Co says it will remain to be primarily committed to the
beer brewing business in the mainland, and will finance the deal
by internal resources and external financing including bond
offerings and bank loans 
    ** Says the acquisition is pending government regulatory
approval
    ** Hang Seng Composite Industry Index on consumer staples
 .HSCICS  ease 0.6% while Hang Seng Composite Index  .HSCI 
surges 1.3%
    ** Hang Seng China Enterprises Index  .HSCE  climbs 0.9% and
Hang Seng Index  .HSI  rises 1.1%
    ** As of last close, stock down 30.9% this year
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))