Sichuan in mainly engaged in the manufacture and sale of alcoholic products. It
provides liquor products under the brand of Swellfun and its wine products
include Swellfun Diancang, Swellfun Jingtai and Swellfun Zhenniang No. 8. It
distributes its products within both domestic and overseas markets.
Diageo – which owns
brands such as Smirnoff vodka, Gordon’s gin and Casamigos tequila – said that
the announcement does not constitute the announcement of an offer and creates
no obligation on the company to make an offer.
In its half-year financial results posted in
January, Diageo saw its net sales rose by 1.7% to reach £6.53 billion and its
operating profit increased by 6.1% to £2.19 billion.
China represents a
small part of Diageo’s business, but the firm posted a net sales increase by
32% in Greater China in its half-year figures.
The company’s Chinese
white spirits net sales grew 80%, driven by expanded distribution beyond its
core 17 provinces.
Sichaun said it would
not be de-listed if a deal goes through.