Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Denmark-based Carlsberg Group has finalized the acquisition of the remaining 33.33% shares in CSAPL (Singapore) Holdings Pte Ltd, previously owned by Nepali businessman C.P. Khetan. The historic deal, valued at approximately NPR 100 billion (USD 744 million), marks one of the largest corporate share transactions in Nepal’s history.
The acquired shares were held by SAPL Holdings Pte Ltd (CSAPLH), a subsidiary of C.P. Khetan’s international business interests. With this transaction, Carlsberg now owns 99.94% of Gorkha Brewery Pvt Ltd in Nepal and 100% of Carlsberg India, consolidating its control over both companies.
This deal follows Khetan’s proposal last year to sell his entire stake in Gorkha Brewery to Carlsberg. The brewery, known for its popular beverage brands in Nepal, had been jointly managed by Khetan Group and Carlsberg, with Khetan previously holding a 33.33% stake through CSAPLH.
The valuation, determined through an independent assessment as part of an arbitration process in Singapore, pegged the value of Khetan’s shares at USD 744 million. Based on this assessment, Carlsberg exercised its right to acquire the stake, ensuring full ownership of the company.
With 99.94% ownership in Gorkha Brewery and complete control over Carlsberg India, the Carlsberg Group now holds absolute authority in management and decision-making for both entities. This development solidifies Carlsberg’s footprint in South Asia’s beverage market and strengthens its global operations.
The acquisition follows a protracted legal dispute between Carlsberg and Khetan Group regarding the management of Gorkha Brewery. The disagreement reached the Singapore International Arbitration Centre (SIAC), which ruled in favor of Carlsberg, granting it the right to call the shares owned by Khetan Group.
Industry experts have hailed the deal as a positive signal for Nepal’s foreign direct investment (FDI) environment. The acquisition underscores Nepal’s potential to attract global investment in key sectors, despite challenges.
Carlsberg’s move to gain full control of Gorkha Brewery is expected to bring operational efficiency and innovation, ensuring the company’s long-term competitiveness in Nepal’s beverage market.
This historic transaction is set to reshape Nepal’s business landscape, marking a significant milestone in the country’s economic history.
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