HSC: State to sell 53.59% stake in Sabeco

September 05, 2017 | 15:31
(0) user say
The government plans to sell 53.59 per cent of its shares in the country’s largest brewery Sai Gon Beer, Alcohol and Beverage Corporation (Sabeco).
A brew production line at Sabeco. The government plans to sell 53.59 per cent of its shares in the company. - Photo cafef.vn

As per Ho Chi Minh City Securities Corporation’s (HSC) latest announcement about the sale, the market value of the State’s 53.59 per cent stake is estimated at VND87.4 trillion (US$3.85 billion).

HSC said that Sabeco’s shares are likely to be sold in an auction. However, it is not known whether the sale will be held once or several times.

If the sale is held the same way as that of Viet Nam Dairy Products Joint Stock Company (VNM), the shares will likely be sold in several phases, HSC said.

Initially, there may be an auction of a small amount of shares, to determine the share price. Subsequent sales will be organised in the following years.

The Ministry of Industry and Trade currently holds 89.59 per cent of Sabeco’s shares. After the sale, the shareholding ratio will fall to 36 per cent, which is the minimum level of ownership needed to guarantee the voting rights of major shareholders.

Many regional and world brewers such as Asahi, CUB & Heineken have been eyeing Sabeco ever since it was earmarked for privatisation. The market is also speculating that a regional firm such as Thai Beverage might have more of an advantage.

HSC forecasts that by 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 year on year, of which the parent company’s profit came to VND2.4 trillion.

Sabeco and Habeco controlling stake may be out of reach for foreign investors
Australian brewer eyes Sabeco and Habeco shares
Sabeco reports 18% rise in profit
Sabeco continues to attract despite delays in share sale
Sabeco and Habeco divestment: three steps to avoid mishaps


What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional