Danish brewer Carlsberg stands to own 90% of its India operations as Sri Lanka . investor Lion Brewery Ceylon sells its stake to focus on the Sri Lankan beer market. The buy out, subject to shareholder nod, would enable Carlsberg own twice the stake it held before.
Carlsberg began commercial operations in India in 2007. It manufactures and markets super premium mild beer Carlsberg, premium strong beer Palone and premium mild beer Tuborg.
In a filing to the Colombo stock exchange last week, Lion Brewery Ceylon said it had decided to sell its shareholding to Carlsberg at a consideration equivalent to the book value of its investment, estimated at $20 million.
This decision taken was after the board of Lion Brewery Ceylon evaluated the large investment programme required in India. Through this move it said it could pay back debt and focus on the Sri Lankan beer market instead.
Lion Brewery Ceylon manufactures Lion beer and markets Carlsberg in Sri Lanka. It had invested in Carlsberg’s India story since 2006.