Once considered as one of Vietnam’s most valuable state asset, SABECO has now become a painful lesson for its majority stakeholder, Thai Beverage Public Co. Ltd. (ThaiBev) which is now looking to raise more funds to support its business in Vietnam. Indirectly, this also translates to a dilution of its stake in the company.
The Vietnamese government is planning to sell its remainding 36% stake in SABECO by the end of this year. SABECO, formally known as Saigon Beer Alcohol Beverage Corp., has a market capitalisation of US$4.5 billion. ThaiBev had earlier invested approximately US$5 billion for a 54% stake in SABECO which has now dropped to less than half its original investment value.
The Ministry of Industry and Trade will complete the transfer of the stake to the state-owned State Capital Investment Corp (SCIC) by the end of August to pave the way for the sale.
Meanwhile, ThaiBev IPO plan for its beer business in Vietnam and Thailand valued at US$10 billion on the Singapore Stock Exchange (SGX) may be delayed due to negative impacts of the coronavirus disease (COVID-19) outbreak.
Nevertheless, Sabeco reported that its business is slowly gaining traction after suffering from the impact of the COVID-19 pandemic and tough local drink-driving laws earlier this year.
ThaiBev owns Thailand’s Chang beer brand, as well as a majority stake in SABECO Saigon Beer.
Vietnamese government to dispose remainding stake in SABECO
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