ThaiBev finances Sabeco acquisition from loans

ThaiBev made Vietnamese history with the transaction

According to information published on ThaiBev’s website, on December 29, after Vietnam Beverage paid all to the Vietnamese government, the Ministry of Industry and Trade (MoIT) officially handed over 53.6 per cent of Sabeco to the firm.

After the transaction, Vietnam Beverage officially became Sabeco’s parent company and holds a controlling stake in Sabeco.

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

According to ThaiBev, the entirety of the funds used for the deal came from loans. Notably, it borrowed $3.05 billion from local banks, including Bangkok Bank, Kasikornbank Public, Krung Thai Bank, Bank of Ayudhya, and Siam Commercial Bank, with two-year terms.

In addition, its wholly-owned subsidiary Beer Co borrowed another $1.95 billion from Mizuho Bank and Standard Chartered Bank’s Singapore branch.

Ealier on December 18, Vietnam Beverage (49 per cent controlled by ThaiBev), won an auction to acquire 343.6 million shares, equivalent to 53.5 per cent of Sabeco at VND320,000 ($14.09) apiece.

This was the largest share sale in Vietnam so far and possibly the largest in Asia this year.

ThaiBev proceeded with the record deal due to Sabeco’s long history, dominance in the Vietnamese beer-loving market, and high potential. Meanwhile, industry experts ascribed the high price to the “control premium” factor.

Previously, before the auction took place, Sabeco’s hit a new record, reaching VND320,000 ($14.09) to become the largest value ticker on the Vietnamese stock exchanges. However, after the auction, its share value saw a consecutive decrease to VND250,000 ($11.01).

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