A Thai beverage company has won a bid to buy the Anhui Gujing Group, according to an announcement on Friday.

The State-owned liquor company notified the Shenzhen Stock Exchange of the bid.

The buyer, International Beverage Holding Ltd (IBHL), a subsidiary of Thai Beverage Public Company Ltd, is now in talks with the Anhui provincial government on the details of the sale, the company said.

Related readings:  Anhui distiller on sale  Bids invited for low-cost properties in Beijing  Group advances in bid for mining unit

The deal, if approved, will make it the second time a maker of the traditional Chinese liquor, baijiu, has been purchased by a foreign investor.

The sale, according to an earlier announcement by the group, would be worth 1.08 billion yuan.

The Gujinggong brand of baijiu is very popular in China, targeting the middle to lower-end market. Its sales in 2006 was 920 million yuan, up 40 percent over the previous year. Its profit was 26.5 million yuan, up 59 percent.

Thai Beverage Public Company Ltd is a major brewery company in Thailand. The controlling shareholder is Charoen Sirivadhanabhakdi, one of the richest men in Thailand. His company controls 73 percent of the local brewery market.

The local government of Bozhou in Anhui Province offered Gujing for sale to domestic and overseas investors in January. Bids to be handled by the Hefei Asset and Equity Exchange until February 13.

According to an announcement by the exchange, foreign bidders must have at least $200 million in assets, or manage assets of no less than 1.5 billion yuan. All potential buyers must have had at least 1.5 billion yuan in 2005 sales and 100 million yuan in profit.

The successful bidder must also retain the group's spirit business as well as its brands.

Wang Xiaojin, chairman of Gujing said: "When we choose a strategic partner, we were most concerned about its culture and way of operation. The most fundamental thing is mutual trust between the two sides."

The annual sales of the Thai company amounts to $2.4 billion, and most of its profits are from the domestic market.

The acquisition of Gujing is one of several moves by the Thai company to increase its influence in the international liquor market, especially in China.

The Thai company and Carlsberg Beer AS jointly purchased Kunming Huashi Brewery Co Ltd for 8.5 million yuan in 2002. In 2005, it signed a 55 million yuan buyout agreement in Kunming with Yunnan 's Yulinquan Brewery.

Last December, the world's largest alcohol beverage manufacturer, Diageo Highlands Holding BV, purchased a 43 percent share of the parent firm of Chengdu Swellfun Co Ltd, making Swellfun the first baijiu brand with foreign interests.

(China Daily 04/14/2007 page10)

(For more biz stories, please visit Industry Updates)