The central province of Thua Thien Hue has sold its 50% stake in the Hue Brewery Company to Danish brewer Carlsberg Group, another partner in the joint venture, for VND1.8tn ($93m).
Hue Brewery has now become a 100% foreign-invested company under Carlsberg’s possession. The deal includes two breweries and the Huda Hue brand name.
The provincial government decided to sell its stake because it did not have the money to invest in boosting production and increasing the company’s market share.
Thua Thien-Hue People’s Committee chairman Nguyen Van Cao said Carlsberg has committed to increase the company’s capacity to 350 million liters a year by 2015.
Hue Brewery was established in 1990 and became a joint venture with Carlsberg Group with the two sides’ stakes valued at $9m each.
Hue Brewery general director Nguyen Mau Chi said the company has aimed to increase its market share to 15% from 8% by 2015.
Chi said to achieve the goal the brewery needs an additional investment of VND2.5tn ($119m).
“The deal will help Hue Brewery continue its sustainable development while stimulating other provincial economic sectors, since it is the province’s leading company,” chi added.