Carlsberg gains near full ownership of Gorkha Brewery

Carlsberg has secured government approval to acquire 9.94% of Gorkha Brewery’s shares from the Khetan Group, raising its ownership to 99.94%. This move was facilitated through reinvested dividends previously withheld in Nepal, amounting to over Rs 4 billion. The Danish multinational now holds an almost complete stake in Gorkha Brewery, leaving less than 1% with local entrepreneurs.

The Department of Industry and Nepal Rastra Bank confirmed the transaction, which aligns with Nepal’s Foreign Investment and Technology Transfer Act. This act permits foreign companies to reinvest locally. The deal ensures the retained dividends stay within Nepal, though Carlsberg retains future rights to repatriate nearly all dividends.

Carlsberg also announced that its Singapore-based subsidiary acquired the Khetan Group’s 33.33% stake in Carlsberg South Asia Pte Ltd, granting it full control of its South Asian operations. The USD 744 million transaction is expected to conclude by the end of 2024. Gorkha Brewery, a leading beer producer in Nepal, manufactures brands like Carlsberg, Tuborg, and San Miguel.