ThaiBev submits official report on Sabeco acquisition

December 23, 2017 | 23:04

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In a report to the Singapore Exchange, Thailand Beverage (ThaiBev) mentioned the acquisition deal of Sabeco and said Vietnam Beverage is expected to complete the payment to the Vietnamese Ministry of Industry and Trade on December 28, 2017.

ThaiBev will complete the payment for the Sabeco acquisition within the year

On December 18, 2017, Vietnam Beverage Co., Ltd. bought 343 million Sabeco shares, equivalent to 53.58 per cent, at VND320,000 ($14.09) apiece. This means that Vietnam Beverage spent approximately VND110 trillion ($4.9 billion) for a controlling stake.

Vietnam Beverage is wholly-owned by Vietnam F&B Alliance Investment JSC, which in turn is indirectly owned by Beer Co., Ltd., a Hong Kong-based company wholly-owned by ThaiBev.

ThaiBev said that before the auction, the company and Vietnam Beverage researched the profit history, financial situation, and management experience of Sabeco as well as the growth potential of the Vietnamese beverage market.

Sabeco is a 140-year-old beer company, with such famous beer brands as Saigon and 333. Sabeco, which accounts for the largest market share in the Vietnamese beer market, is one of the leading beer companies in the ASEAN.

ThaiBev found that the Vietnamese beer sector holds great potential, ranking third after China and Japan. This acquisition will enable the Thai giant to diversify its geographic markets and acquire a large distribution network in Vietnam. It also conforms to ThaiBev’s vision to 2020.

ThaiBev also wants to evolve long-term relations with the Sabeco board of directors and shareholders in order to share experiences and sharply develop in the region and over the world.

Currently, 97 per cent of ThaiBev’s revenue comes from Thailand's market. To consolidate its brands in Southeast Asia, ThaiBev is expanding to overseas markets, towards the goal of obtaining over 50 per cent of its total revenue from these markets by 2020.

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