Diageo Receives Approval to Become Sole Shareholder in SJF Holdco

DiageoDiageo has received approval from the Chinese authorities to acquire the remaining 47% stake in Sichuan Chengdu Shuijingfang Group Company Ltd. (SJF Holdco) (formerly Sichuan Chengdu Quanxing Group Company Ltd) owned by its Chinese partners.  As a result, SJF HoldCo will be converted from a joint venture into a wholly foreign-owned enterprise owned by Diageo.  On completion, Diageo’s indirect interest in the Shanghai-listed company, Sichuan Shuijingfang Co., Ltd. (Shuijingfang), will rise from 21.05% to 39.71%. The total consideration for the 47% of SJF Holdco will be approximately £233 million.

Gilbert Ghostine, President of Diageo Asia Pacific, said:
“I am delighted to have gained approval from the Chinese authorities to acquire the rest of our Chinese partners’ interest in SJF HoldCo.  This is a milestone in the journey we began with our partners six years ago. As the controlling shareholder in Shuijingfang, Diageo will continue to work with the senior Chinese management to build Shuijingfang into the leading international Bai Jiu brand. I have every confidence in the long-term future of the Bai Jiu  category in China.”
Vermilion Partners acted as transaction adviser to Diageo.  Haiwen acted as legal adviser to Diageo on the transaction. HSBC acted as partner bank for FX and Settlement.

Read more on

Suggested Articles

As the year draws to a close it's time to start thinking about what investments you want to make in 2020.

Attorney John S. Berry, Jr. explains why operators should hire veterans, what to ask in interviews, and how staff should interact with veterans.

Bars and restaurants are becoming a more integral part of the hotel guest experience, serving the changing desires of tourists and locals alike.