The recent rally in the share price was driven by the announced acquisition of Carlsberg Singapore. Whilst we viewed the acquisition as positive, generating significant synergies, the shares had rallied too hard. Hence our sale.
Carlsberg Malaysia. The company is one of two domestic beer producers in Malaysia, with a 50% market share in blonde beer. Following a restructuring of its sales network, it is now launching new products after a two year hiatus. The government has already announced its 2009 budget, ensuring excise duty will not be hiked in the year ahead. Operating margins are now at an historic low, which we view as a positive. The company is net cash and provides a dividend yield of 9%.
| Sedol |
Type |
Price |
Date |
| B09FGC9 |
Sell
|
MYR 4.636
|
31/07/2009 |
| B09FGC9 |
Buy |
MYR 3.52 |
05/12/2008 | |
