San Miguel, the Philippines’ largest brewery corporation, is “evaluating and may bid” for Viet Nam’s Saigon Beer Alcohol Beverage Corporation (SABECO), company president Ramon Ang told Bloomberg reporters on March 31.

Viet Nam may provide an anchor to increase firm’s brewery business, as consumption in the country is growing at an annual rate of at least 10 per cent, five times that in the Philippines, he said, adding that his company sells nine out of every 10 beers in the Philippines.

“The businesses we ventured into have matured, therefore the company is in a very stable position,” Ang said, citing compounded annual growth of 20 per cent in recurring profit and a near fourfold increase in assets since 2008 following San Miguel’s diversification from food and drinks into non-allied industries such as toll roads and resources. Excluding one-off items, profit will rise at least 20 per cent, to some 60 billion pesos (US$1.2 billion) this year, he said.

Saigon Beer, or Sabeco, Viet Nam’s largest brewer with 40 per cent market share, has received government approval to hire consultants to advise the state-owned company on its planned stake sale this year. Heineken NV, Anheuser-Busch InBev NV and Asahi Group Holdings Ltd are among seven foreign companies that previously registered bids.

Ly Minh Hoang, head of Sabeco’s Shareholders’ Relations Department told Viet Nam News in a telephone interview on Tuesday that he was aware of the news reports but Sabeco was yet to receive an official offer from the Filipino company.

Sabeco listed nearly 641.3 million shares (under code SAB) at a starting price of VND110,000 per share on the HCM Stock Exchange (HOSE) on December 6, 2016. After two months of listing on the southern exchange, the company boasted a net profit of nearly VND4.5 trillion, 22 per cent higher than its yearly target. Its share price doubled on the debut day to touch VND215,400 a share, becoming the most expensive nationwide.

In the first nine months of 2016, Sabeco’s net revenue reached more than VND21.8 trillion, an increase of nearly 9 per cent year on year. — VNS