A feud has broken out between family shareholders of the Brazilian brewing company Schincariol, after one side of the family sold half of the business to an outside shareholder apparently not notifying the other family members.
Brothers Alexandre and Adriono Schincariol, who own 50.45% of the brewing group through a holding company called Aleadri-Schinni Participacoes e Representacoes, sold their entire stake to Tokyo-based Kirin Holdings, according to a statement issued on 2 August.
But the deal, worth 3.95 billion Brazilian reals (€1.76 billion), has met with strong opposition from three Schincariol cousins, who together own the remaining 49.55% of the company.
Gilberto, Daniela and Jose Augusto Schincariol said in a joint statement: “Shareholders controlling 49.55% of Schincariol's shares declare that they do not recognize as legitimate any transfer of shares to third parties.”
The cousins said the company’s bylaws require that any shares put up for sale should first be offered to fellow shareholders. When contacted, the company was not available for comment.
Kirin has said it is proceeding with the deal, as there is “no problem in terms of its legality and validity,” according to a statement it made to the Wall Street Journal.
Schincariol Group, which produces beer and soft drinks, is the second largest beer manufacturer in Brazil after fellow family-controlled ABInBev. Schincariol holds 11% of the country’s market share for beer.
The company began in 1939 as a soft drink vendor and entered the beer market in 1989. Reports say the Schincariol brothers have been talking to potential bidders for several months before signing the share sale agreement with Kirin Holdings.
Schincariol had 2010 revenues of around €2.54 billion.