News

ThaiBev wins Sabeco control with US$4.8bn bid

Most popular

Pernod Ricard in YTD fiscal-2021 - preview

The just-drinks Analyst returns - Apr '21

The just-drinks Analyst returns - Apr '20

Heineken throws Q1 surprise - analysis

Remy Cointreau in fiscal-2021 - results preview

MORE

ThaiBev will pay VND109.97tn (US$4.8bn) for a majority stake in Saigon Beer Alcohol & Beverage Corp (Sabeco) after the Chang Beer owner emerged as the sole major bidder in the race for Vietnam's biggest brewer.

ThaiBev hopes to expand its brands in the fast-growing Vietnamese market

ThaiBev hopes to expand its brands in the fast-growing Vietnamese market

Through Vietnamese subsidiary Vietnam Beverage, ThaiBev will control 53.59% of Sabeco after winning yesterday's government-controlled auction, the company confirmed today. The auction was virtually uncontested after interest from multinational brewers including Anheuser-Busch InBev and Asahi faded away.

The Vietnamese government, which owns 90% of Sabeco, set a minimum price of VND320,000 per share in the auction, a near-30% premium on Sabeco's average trading price over the past six months. An analyst earlier this month said global brewers would likely be put off by the relatively high price, as well as ownership restrictions that blocked foreign companies from buying a majority stake.

Yesterday, ThaiBev skirted the ownership rules by routing the purchase through Vietnam Beverage. According to ThaiBev, Vietnam Beverage is owned by Vietnam F&B Alliance Investment Company, which is 49% owned by BeerCo Limited - an indirect but wholly-owned unit of ThaiBev. 

Meanwhile, the Thai company rationalised the VND320,000-per-share price it paid by saying the deal will it enable to expand in the fast-growing Vietnamese market with a company that has "strong financial performance with margin expansion potential".

Media reports today said that ThaiBev was not the only bidder interested in Sabeco. A Vietnamese individual put in a bid for 0.003% of the company.

The Vietnamese government announced the sale of Sabeco last year as part of efforts to raise funds. Authorities will retain a 36% stake in the brewery.

The beer category in 2017 - just-drinks' Review of the Year, Part IV - FREE TO ACCESS


Related Content

Vietnam lines up final SABECO stake sale - report

Vietnam lines up final SABECO stake sale - report...

High cost of Sabeco sale good news for Heineken as Anheuser-Busch InBev may exit race - analyst

High cost of Sabeco sale good news for Heineken as Anheuser-Busch InBev may exit race - analyst...

This week in beer & cider, featuring the race for Sabeco, Heineken buying craft in London and cannabis beer

This week in beer & cider, featuring the race for Sabeco, Heineken buying craft in London and cannab...

This week in beer & cider, featuring what we said about the beer category in 2017, the ongoing Sabeco saga and is Anheuser-Busch InBev closing in on Craft Brew Alliance?

This week in beer & cider, featuring what we said about the beer category in 2017, the ongoing Sabec...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?