Thai Beverage (ThaiBev) is proposing a spinoff of as much as 20% of its BeerCo via an IPO after shelving the plan in 2021.
ThaiBev said in a statement, “The board sees significant growth potential in the beer business and believes that the potential can better be developed with a dedicated board of directors and management team focused solely on growing the beer business.”
ThaiBev plans to use some of the proceeds of the spinoff to repay debt. The spinoff will enable BeerCo to fund its own expansion plans, thereby leaving ThaiBev to focus its resources on growing its other businesses which include non-alcoholic beverages, packaging business as well as its popular Oishi restaurant chain.
BeerCo is a Singapore-based investment holding company which consolidates nearly all of ThaiBev’s beer business and operations, with the exception of the sale of Thai beer products outside Thailand, the filing said. The international beer sales business will still be operated by the ThaiBev group after the potential spinoff, the filing said.
BeerCo’s operations include producing, distributing and selling beer, including the Chang, Archa and Federbrau brands, in Thailand, and Bia Saigon and 333 in Vietnam. BeerCo has 3 breweries in Thailand and 26 in Vietnam.
For the financial year ended 30 September 2021, BeerCo posted revenue of around S$4.21 billion (US$3.03 billion) and profit after tax of S$342.5 million (US$246.5 million). BeerCo contributed 29% of ThaiBev’s profit after tax in the 2021 fiscal year.