Don’t miss the latest developments in business and finance.

Thai Beverage emerges as only bidder for large stake in Vietnam's Sabeco

Image
Reuters HANOI/SINGAPORE
Last Updated : Dec 12 2017 | 12:45 PM IST

By Mai Nguyen and Anshuman Daga

HANOI/SINGAPORE (Reuters) - Thai Beverage, through a Vietnam unit, has emerged as the only bidder which has registered to own at least 25 percent of the nation's top brewer, Sabeco, in which the government is selling a $5-billion stake.

Last month, Vietnam announced its biggest-ever and long-delayed state sale of Sabeco, or Saigon Beer Alcohol Beverage Corp and said it was open to selling a stake of nearly 54 percent, but retained a cap of 49 percent on foreign ownership.

Citing people familiar with the matter, Reuters reported on Sunday that brewing groups including Thai Beverage, Anheuser-Busch InBev, Kirin Holdings, Asahi Group Holdings and San Miguel were interested in the auction.

The people had said that Thai Bev, controlled by tycoon Charoen Sirivadhanabhakdi, was shaping up as a strong contender, as it was familiar with the Vietnam system and saw Sabeco as key to expanding outside its home market.

"Thai Bev had been planning to buy into Sabeco long before the formal sales process kicked off. They seem to have ticked all the right boxes," a source, who declined to be identified as he was not authorised to speak to the media, said on Tuesday.

More From This Section

On its website, Vietnam's trade ministry said Vietnam Beverage Company Ltd, a unit of Thai Bev, was the only investor to register an interest to own 25 percent or more of Sabeco as of 1100 GMT on Monday. It did not give any details.

Sabeco's shares jumped by the daily limit of 7 percent in early trade to stand at 313,000 dong ($13.8). The shares have nearly trebled since listing a year ago, with analysts citing a small float as inflating its market value.

The Sabeco auction is on Dec. 18, and bidders keen to own a stake of 25 percent or more of Sabeco's shares need to inform local authorities a week ahead.

Sabeco's foreign ownership cap limits overseas bidders to a minority stake of up to 39 percent, as foreign entities already own 10 percent.

Vietnam Beverage Company Ltd is owned by Vietnam F&B Alliance Investment Company, which is in turn 49-percent owned by BeerCo Ltd, an indirect wholly-owned subsidiary of Thai Beverage, official documents on the companies showed.

Thai Beverage had no immediate comment and shares in the Singapore-listed company were halted for trading pending an announcement.

Lack of control, the unorthodox manner of the sale of the Sabeco stake and sky-high valuations could put off some possible bidders, bankers, investors and lawyers said. [L8N1O51Q9]

It was not immediately clear if other potential bidders for Sabeco had decided to bid for stakes of less than 25 percent or if they would sit out the auction.

Vietnam's trade ministry, which represents state shares in Sabeco, has said foreign investors can link up with Vietnamese firms to buy shares in Sabeco, but have to comply with local laws and regulations.

($1=22,710 dong)

(Reporting by Mai Nguyen in HANOI and Anshuman Daga in SINGAPORE; Additional reporting by Chayut Setboonsarng in BANGKOK; Editing by Clarence Fernandez)

Also Read

First Published: Dec 12 2017 | 12:31 PM IST

Next Story