The Ministry of Industry and Trade on December 11 announced that an investor has registered to hold at least 25 per cent of the Saigon Beer, Alcohol and Beverage Corporation (Sabeco), of which the Government is going to sell stake equal to nearly US$5 billion.
According to the ministry’s announcement, Vietnam Beverage Co Ltd, a unit of Thai Beverage, has become the first investor to register to buy a large quantity of Sabeco shares at 8pm on December 11.
Under the ministry’s Decision No. 4444/QDD-BCT on November 17 on bidding of Sabeco shares, bidders keen to own 25 per cent or more stake need to inform local authorities a week earlier.
As reported by local news website cafef.vn, Vietnam Beverage with charter capital of VND682 billion ($30.3 million), is wholly owned by Vietnam F&B Alliance Investment Company, which in turn is 49 per cent owned by BeerCo Ltd. BeerCo Ltd is a subsidiary of Thai Beverage, which is controlled by tycoon Charoen Sirivadhanabhakdi.
According to the Government’s plan for Sabeco’s divestment, 53.59 per cent stake, equivalent to nearly 343.7 million shares in the country’s largest brewery, will be sold to investors.
The shares, coded SAB, will be auctioned at an initial price of VND320,000 ($14.04) each on December 18 via open competitive bidding in accordance with relevant regulations.
At the initial price, Sabeco’s market capitalisation will reach VND205 trillion ($9 billion). If at least 25 per cent of the company is bought, Vietnam Beverage will have to pay $2.25 billion.
Foreign investors will be allowed to buy up to 247.47 million shares, or 38.59 per cent stake in Sabeco. Foreign ownership in Sabeco is limited to a maximum of 49 per cent. Currently, foreign entities already own 10 per cent.
The HCM City Securities Corporation forecasts that by the end of 2017, Sabeco’s net revenue will total VND34.6 trillion, up 13.4 per cent year-on- year, and its post-tax profit will reach VND4.9 trillion, up 9.4 per cent year-on-year.
In the first half of this year, Sabeco’s post-tax profit touched VND2.5 trillion, up 8 per cent from the figure of last year’s corresponding period. — VNS