Brewer seeks to snap up new stakes

Saigon Beer-Alcohol-Beverage Corporation (SABECO) is planning to acquire an additional 43.2 per cent stake in local brewer Saigon-Binh Tay Beer Group Corporation (Sabibeco) this year, making it a subsidiary. The deal is expected to close by the end of 2024.

The competition is hot in alcoholic beverages and more transactions could be on the way to boost capacities and more, photo Le Toan

According to the announcement, SABECO plans to purchase more than 37.8 million shares, equivalent to 43.2 per cent of Sabibeco’s total outstanding shares.

SABECO is currently a major shareholder of Sabibeco, holding nearly 14.4 million shares, equivalent to 16.4 per cent of charter capital. If the bid is successful, SABECO will become the parent company.

Sabibeco was established in 2005. Currently, it is the largest beer processing company in Ho Chi Minh City in which SABECO does not hold controlling shares.

Sabibeco has five member factories with a total capacity of 510 million litres of beer a year, and manufactures and processes SABECO’s Saigon Lager, Saigon Export, Saigon Special, and Saigon 333 Export products.

If the Sabibeco deal is completed, SABECO’s total capacity will be increased to 3.01 billion litres of beer/year in 2024, an increase of 25.4 per cent compared to the current capacity, becoming the beer enterprise with the largest production scale in Vietnam.

In 2023, the size of Vietnam’s alcoholic beverage market will reach 5.41 billion litres, of which the beer market will reach 5.34 billion litres (an increase of 10.4 per cent compared to 2022), accounting for 98.7 per cent. The scale of Vietnam’s alcoholic beverage industry by 2033 is forecast to reach 14.56 trillion litres, corresponding to a compound growth rate of 10.4 per cent in the period 2024-2033.

In 2024, merger and acquisition (M&A) transactions in the real estate sector, especially industrial real estate, will continue to lead in value. The strong development of this industry has attracted many foreign investors, especially from some countries such as Singapore, South Korea, and Japan.

In the first half of 2024, the real estate sector had eight M&A deals, with an average transaction value of $179.7 million. In the same period last year, there were 18 deals, with an average transaction value of $81.8 million.

At a workshop on legal and financial aspects of real estate M&A transactions held in July, Le Xuan Dong, director of EY Consulting Vietnam, said that in the first half of 2024, the M&A market in Southeast Asia tended to decline in both total value and number of transactions.

“Vietnam is no exception when recording a slight decrease in the number of transactions, but the transaction value increased by nearly 9 per cent over the same period last year. Particularly in M&A in the real estate sector, domestic investors have risen to the leading position, with a rate of 92.6 per cent,” said Dong.

SABECO supporting localities hit by Typhoon Yagi Beer giant SABECO is working with the Ho Chi Minh Communist Youth Union (HCYU), local authorities, and partners to support the rebuild of northern provinces following the destruction brought by Typhoon Yagi.

SABECO named top 10 F&B company for eighth year in a row Saigon Beer-Alcohol-Beverage Corporation (SABECO) has once again been named one of the Top 10 Prestigious Companies in the Food and Beverage Industry for 2024 by Vietnam Report. This marks the eighth consecutive year SABECO has been featured in these rankings.

SABECO steps up to serve society in times of strife Saigon Beer-Alcohol-Beverage Corporation has come to the aid of people struggling after Typhoon Yagi through a series of initiatives.