Thai Beverage mulls over bidding for Sabeco and Vinamilk

November 23, 2016 | 14:13
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Thai Beverage Public Company Limited (Thai Beverage) is considering bidding for Vietnamese state-owned enterprises Saigon Beer, Alcohol and Beverage Corporation (Sabeco) and Vietnam Daily Products JSC (Vinamilk), according to newswire Nikkei.

Besides, Thapana Sirivadhanabhakdi, Thai Beverage chief executive, denied earlier media reports that the group is following the state divestment from Hanoi Beer, Alcohol and Beverage Corporation (Habeco).

Acquisitions in Vietnam would help Thai Beverage achieve its 2020 goals to expand the group’s overseas operations to 50 per cent of its total revenue from the roughly 20 per cent at present.

Thapana said that Vietnam, with its sizeable population of 90 million, is Thai Beverage’s priority market in its international drive, followed by the Philippines and Myanmar.

It is not the first time that Thai Beverage expressed interesting in Sabeco. Earlier in 2014, the group failed to purchase a 53 per cent stake for $2 billion. On the heels of the failed deal, in early 2015, the firm offered to buy a 40 per cent stake in Sabeco, but failed again.

Along with Thai Beverage, Japanese Asahi Group Holdings Ltd. and Kirin Holdings Co. are also considering bidding for Sabeco’s shares. The move is part of the two companies’ overseas expansion plans to counterbalance a shrinking domestic market.

Regarding Vinamilk, a representative of State Capital Investment Corporation (SCIC) said that numerous domestic and foreign investors have already registered to join the auction. However, specific information about these investors has yet to be disclosed.

Established in October 2003, Thai Beverage focuses on four business segments: spirits, beer, non-alcoholic beverages, and food. It is currently the leading beverage producer and distributor in the ASEAN.

Thai Beverage was listed on the mainboard of the Singapore Exchange in 2006. The market capitalisation of Thai Beverage is currently over $17 billion. In 2012, it expanded its business overseas and through the acquisition of Fraser and Neave Ltd. a highly accomplished Singaporean company that boasts many renowned brands.

The firm has currently 125 subsidiaries, including 18 distilleries, three breweries, and 10 non-alcohol beverage production facilities. It has an extensive distribution network covering 400,000 points of sales in Thailand only. Thai Beverage’s most recognised spirits brands include Ruang Khao, SangSom, Mekhong, Hong Thong, and Blend 285.

Fraser & Neave Ltd. ignores Vinamilk shares in first auction
Sabeco applies for listing on HCM City stock exchange
Vinamilk divestment: first step in December
Japanese breweries on startline of Sabeco auction
Foreign strategic investors disinterested in sharing Vinamilk pie
Habeco and Sabeco to list on stock exchanges
Biggest VN brewer gets approval to go public
SCIC to divest 9% stake in Vinamilk this year
Government to divest from Vinamilk in 2016

By By Ha Vy

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