UPDATE 1-Asahi to sell Tsingtao Brewery stake to Fosun, others for $937 million

million@ (Adds Fosun statement in para 3,5)

TOKYO, Dec 20 (Reuters) - Japanese brewer Asahi Group Holdings said on Wednesday it would sell its entire 19.9 percent stake in China's Tsingtao Brewery Co, partly to China's Fosun and partly to Tsingtao itself, for a total of 106 billion yen ($937 million).

Asahi said in October it was considering the sale, its latest divestment from China's beer market as it seeks to expand its business in Europe and other Asian markets.

It has agreed to sell most of its stake - about 243 million shares or equivalent to a 17.99 percent stake - to Fosun for HK$6.6 billion ($844 million), Asahi and Fosun said in separate statements. The remainder, around 27 million shares, will be sold to Tsingtao for HK$735 million, Asahi said.

The sale price of HK$27.22 per share amounted to a 32 percent discount to Tsingtao's last closing price in Hong Kong on Wednesday.

Fosun said the transaction was expected to close in the first quarter of 2018.

The decision to divest its stake in Tsingtao, which Asahi acquired in 2009 for around $666 million, follows the Japanese company's announcement in June to sell its 20 percent stake in China's Tingyi-Asahi Beverages Holding Co Ltd for $612 million.

The maker of Japan's best-selling beer, Asahi Super Dry, has been intensifying its focus on Europe, and bought a group of eastern European beer brands from Anheuser-Busch InBev late last year for 7.3 billion euros.

China is the world's largest beer market by sales, but profits have been harder to come by amid fierce competition between local brewers and global beer giants AB InBev, Heineken NV and Carlsberg.

($1 = 113.1500 yen) ($1 = 7.8234 Hong Kong dollars) ($1 = 7.8243 Hong Kong dollars) (Reporting by Malcolm Foster in TOKYO; Additional reporting by Lee Chyen Yee in SINGAPORE; Editing by Susan Fenton)