Kingway Brewery Holdings Ltd's said on Monday that controlling shareholder GDH Ltd has exercised its right to buy a 21.37 percent stake held by a Heineken NV joint venture in China, blocking a bid from China Resources Enterprise Ltd (CRE) .

Shares of Kingway fell 2.9 percent in early afternoon trading, while China Resources were up 1.2 percent compared with a 1.2 percent gain by the Hang Seng Index .

In a filing to the Hong Kong bourse, Kingway said GDH, a wholly-owned subsidiary of Guangdong Holdings Ltd, would buy the stake for 1.08 billion yuan ($164.94 million), increasing its holding in the Chinese brewer to 73.82 percent.

Last month, CRE, which produces China's top beer brand Snow with SABMiller Plc , said it would buy a 21.4 percent stake in Kingway Brewery from Heineken-APB (China) Pte Ltd for about 1.08 billion yuan. [ID:nTOE72D00D] Analysts said the bid represented a high premium over Kingway's last trading price.

Kingway is jointly controlled by Asia Pacific Breweries Ltd (APB) , a unit of Singapore food and property conglomerate Fraser and Neave Ltd , and the world's third-largest brewer Heineken NV . ($1 = 6.548 Chinese Renminbi)