Carlsberg's Southeast Asia joint venture with Sapporo Breweries raises the prospect of the Danish brewer announcing a new share buyback later this year, Citi analysts Simon Hales and Sunny Wadhwani write. Carlsberg and Sapporo will form a new joint venture across Southeast Asia and Hong Kong, while also expanding their collaboration into the U.K. The JV will be 75% owned by Carlsberg and 25% by Sapporo and will include Carlsberg's existing operations in Hong Kong, Singapore, Malaysia, Laos, Vietnam and Cambodia and the rights to produce and distribute the Sapporo brand in these markets. Carlsberg will receive $643 million in cash from Sapporo. "We expect the deal to be well received by investors." Citi rates Carlsberg at buy with a 1,060 Danish kroner target price. Shares rise 2% to 654.20 kroner. (dominic.chopping@wsj.com)
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Carlsberg's Sapporo JV Increases Prospect of Share Buybacks — Market Talk
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Carlsberg's Southeast Asia joint venture with Sapporo Breweries raises the prospect of the Danish brewer announcing a new share buyback later this year, Citi analysts Simon Hales and Sunny Wadhwani write. Carlsberg and Sapporo will form a new joint venture across Southeast Asia and Hong Kong, while…