ThaiBev doubles down on Vietnam

H ANOI : Thai Beverage Pcl (ThaiBev) is doubling down on Vietnam after it partnered with a local company to buy a US$4.8 billion (RM19.63 billion) stake in the country’s largest brewer, a key step for billionaire Charoen Sirivadhanabhakdi’s controlled firm as it seeks to dominate Southeast Asia’s beverage market.

Vietnam Beverage, the local unit which ThaiBev holds a stake in, said it won the bidding for an almost 54 per cent holding in Saigon Beer Alcohol Beverage Corp (Sabeco).

ThaiBev emerged as the only foreign investor to bid in what had been billed as a hotly-contested auction of Vietnam’s biggest asset sale on record.

Vietnam’s Ministry of Industry and Trade sold the Sabeco stake for 320,000 dong (RM57.63) a share, according to a statement, a 3.5 per cent premium over yesterday’s closing price.

While global companies including Anheuser-Busch InBev NV and Asahi Group Holdings Ltd had shown interest earlier, many were put off by Sabeco’s valuation as the stock surged 56 per cent this year.

ThaiBev is paying a premium to get into Vietnam’s US$6.5 billion beer market as it targets to expand across Southeast Asia to diversify revenue streams.

“While the deal could be deemed pricey, it does give ThaiBev access to a strong player in Vietnam’s growing beer market,” said CIMB-GK Securities analysts Cezzane See and Siew Khee Lim in a note.