A Thai Beverage affiliate won the right to buy around 54% stake in Vietnam’s Saigon Beer Alcohol Beverage Corp. in what is to be the Vietnam government’s biggest divestment of a state-owned enterprise.

Vietnam Beverage, ThaiBev’s domestic unit, took a 54% stake in Sabeco, as Vietnam’s largest brewer is known. An undisclosed individual domestic investor had registered to bid for 20,000 shares. In all, the ministry garnered bids for about 343.682 million shares in Sabeco.

The Vietnamese government expects to collect about $4.8 billion from the deal.

Vietnam Beverage was the only institutional bidder for the company better known as Sabeco. An individual investor who introduced himself as a fortune teller and spiritual dancer also participated in the auction, acquiring a negligible stake.

Vietnam Beverage is wholly owned by F&B Alliance Vietnam, a local unit of the Fraser and Neave (F&N), a food and beverage conglomerate based in Singapore. The Thai Beverage group last month bought a 49% stake in F&B Alliance Vietnam, apparently with the sole intent of bidding for Sabeco.

Anheuser-Busch InBev of Belgium, Japan’s Kirin Holdings and other big multinationals showed interest in Sabeco, Vietnam’s largest brewer, but withdrew, apparently due to the high purchase price.

ThaiBev, the maker of Chang beer, has long sought a major overseas acquisition to reinforce its core spirits and brewing businesses.

An aging population and increasing excise taxes have put a ceiling on Thailand’s alcoholic beverage market. These factors are pushing ThaiBev to become a pan-Southeast Asia provider of beverages.

Thailand has a population of around 68 million, but ThaiBev desperately wants to help itself to more of the rising income of Southeast Asia’s 600 million people.

The company has generated most of its overseas sales in Europe. In Scotland, it owns the Old…

Source link

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

TAT and Thai Vietjet Air sign letter of intent to promote tourism to Thailand

Thai Vietjet Air will operate the largest flight capacity between Vietnam and Thailand when it doubles the frequency of its flights between Ho Chi Minh City and Bangkok – planned to happen this month – to up to six flights per week.

China Launches New Freight Train Services to Vietnam

The freight routes reduce the transportation time from an average of 20 days to between five and seven days

How East Asia has controlled coronavirus, and what it means for its recovery

Vietnam’s crisis response has been representative of East Asia’s impressive ability to stem the spread of COVID-19. It has reported zero deaths from COVID-19, compared to 846 confirmed deaths per million in Belgium.