AMSTERDAM (AP) - Heineken NV continued to inch toward a takeover of Tiger beer maker Asian Pacific Breweries on Wednesday, revealing that it has purchased a 2.68 percent stake in the company for around $290 million, even as it struggles to buy a much larger, controlling stake, from Singapore’s Fraser and Neave for $4.7 billion.
The news comes on the same morning Heineken reported weak first-half earnings, with margins hurt by rising costs, although the company did report an increase in sales and market share.
Heineken, which reports earnings twice a year, said net profit was 783 million euro ($976 million), up from 605 million euro in the same period a year ago. The company said profit would have fallen around five percent if not assisted by factors such as a 131 million euro gain from the sale of a brewery in the Dominican Republic this year, and high restructuring costs last year.
Chief executive Jean-François van Boxmeer said the Asian Pacific Breweries deal was an important part of Heineken’s future growth plans.
APB’s business “provides direct access to two of the world’s most exciting growth regions for beer - Southeast Asia & the Pacific Islands, and China,” he said in a statement. “We are working towards a swift completion of the transaction and are looking forward to ongoing growth and success in the region, led by the Heineken and Tiger brands.”