M&A

M&A

Danish brewer Carlsberg to buyout JV partner's stake in India, Nepal ops for $744-M

Economic Times  

Kathmandu, Nepal-based Khetan Group, which owns 33.3% in Carlsberg South Asia Pte Ltd (CSAPL), the holding company for Danish brewer Carlsberg's businesses in India and Nepal, is to sell its entire stake to Carlsberg for USD 744 million (INR 6,100 crore). Over the past few years, Carlsberg and Khetan Group were engaged in a boardroom battle over alleged financial irregularities, including incorrect payments, embezzlement and kickbacks from customers. Carlsberg has had serious disagreements pertaining to the shareholders' agreement between Carlsberg and its partner CSAPL Holdings Pte Ltd (CSAPLH) in relation to CSAPL, the holding company for the businesses in India (100%) and Nepal (90%). Carlsberg owns two-thirds and CSAPLH the remaining one-third in the holding firm. At the request of CSAPLH, the disagreements were referred to arbitration in Singapore and a liability award was issued by the arbitration tribunal in May last year. The tribunal awarded Carlsberg the right to call CSAPLH's shares in CSAPL. The put option valuation was released by the valuers on 6 February 2023, stating a value for CSAPLH's shares in CSAPL of USD 744 million.