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NEW YORK / HONG KONG (The Global Times) - Australian beverage conglomerate DownUnder Brewing Co. and two prominent private equity
firms are lining up binding offers for the Hong Kong based beverage company HappyHour Co. ahead of the Friday deadline, sources familiar
with the matter told The Global Times. A source close to DownUnder Brewing said the Australian producer values the Hong Kong-based firm at
over USD$650mm. The sales process has also drawn strong interest from two financial investors and at least one U.S. brewing company. A
small group of bidders have been invited to submit binding offers by end of week as the deal is expected to close later this quarter, the sources
said

Net present value based on perpetuity growth method

Preliminary valuation Revised valuation (post-fire)
Value Based on 8.5% WACC & 0.5% TGR Amount ($m) % of NPV Value Based on 8.5% WACC & 0.5% TGR Amount ($m) % of NPV
Present Value of Cash flows 409 50.9% Present Value of Cash flows 409 50.9%
PV of Terminal Value 394 49.1% PV of Terminal Value 394 49.1%
Implied Firm NPV 803 100.0% Implied Firm NPV 803 100.0%
Net debt as of Mar-20E (85) Net debt as of Mar-20E (85)
Implied equity value 718 Implied equity value 718
Implied offer share price (c) 361 Implied offer share price (c) 361
% premium to current 118.8% % premium to current 118.8%

Source: Company Business Plan (January 2020); Equity research; J.P. Morgan analysis

WORLDWIDE BREWING 1