Sapporo to divest real estate, restructure for growth

Sapporo Holdings Limited announced it will divest its consolidated subsidiary, Sapporo Real Estate Development Co., Ltd., to SPARK Godo Kaisha (backed by PAG and KKR). The transaction, valued at JPY 477.0 bn, is expected to result in a gain of approximately JPY 330.0 bn. This move aligns with Sapporo's strategy to focus on its beverage business, utilizing the capital for growth investments (JPY 300.0-400.0 bn), debt reduction (JPY 100.0 bn), and shareholder returns (JPY 100.0 bn total by 2030).

The company will also transition from a pure holding company to an operating holding company by absorbing its wholly-owned subsidiary, Sapporo Breweries Limited, effective July 1, 2026. This reorganization includes a change in the company name to Sapporo Breweries Co., Ltd., aiming to centralize management resources, improve efficiency, and accelerate business speed.

To support these strategic shifts, Sapporo Holdings is revising its dividend policy from a consolidated payout ratio of 30% or more to a DOE (Dividend on Equity) of 3% or more, with a target of 4% or more by 2030, effective from the year-end dividend of December 2025. This change emphasizes stable and sustainable shareholder returns and improved capital efficiency.