Bloomberg News

Turk Tuborg Gains as Carlsberg Sells Majority Stake

March 27, 2008

Turk Tuborg Bira & Malt Sanayii AS (TBORG), a Turkish beermaker, rose to a five-month high in Istanbul trading after Carlsberg A/S (CARLB) agreed to sell its 95.7 percent stake in the company to CBC Group.

Turk Tuborg advanced 28 kurus, or 16 percent, to 1.98 liras, extending this week's gain to 64 percent. That raised the company's market value to 197.9 million liras ($155.3 million).

Details of the sale are still being discussed, Valby, Denmark-based Carlsberg said today in a stock exchange statement. CBC is the Danish brewer's partner in Romania and Israel.

``This is a fine move'' for Carlsberg, said Peter Kondrup, an analyst at Kaupthing in Copenhagen. ``They have struggled over the years and they have been losing money there. There has been a lot of skepticism about that business.''

Carlsberg rose 5 kroner, or 0.8 percent, to 625 kroner in Copenhagen trading, giving a gain of 1.3 percent in 2008.

The Danish brewer said last month that it decided to write down the so-called carrying value of non-current assets in Turkey by 100 million kroner ($21.2 million). Pricing in Turkey has been ``challenging,'' Carlsberg said when it presented its annual and fourth-quarter figures on Feb. 19.

The Danish company entered Turkey in 1967 and has held a majority stake in Turk Tuborg since 2001, according to Carlsberg spokesman Jens Peter Skaarup.

``It's a very small business,'' in relation to total company volumes, Skaarup said today by phone. ``The production was 1.7 million hectoliters last year and it was the second- largest brewer in the country, with a 16 percent market share.''

To contact the reporter on this story: Meera Bhatia in Stockholm at

To contact the editor responsible for this story: Keith Campbell at

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