ThaiBev only major bidder for Vietnam’s biggest brewer

HANOI: ThaiBev has emerged as the only major bidder for a majority stake in Vietnam’s largest brewer, Sabeco, ahead of a highly- anticipated auction for a US$ 4.8 billion stake in the state- owned beer behemoth set to open yesterday.

Through its domestic unit Vietnam Beverage, Thai Beverage f loated a bid for 343.662 million shares, or a 53.59 per cent stake in the company, the Ministry of Industry and Trade said.

An unnamed domest ic individual also sought 20,000 shares, it added.

They were the only two bidders listed.

Sabeco, the country’s largest brewer which produces the much- glugged Saigon Special and 333, announced last month it would sell off a nearly 54 per cent stake of the company, but that foreign ownership would be capped at 49 per cent. The company is already 10 per cent foreign- owned.

ThaiBev’s Vi e t n am Beverage is considered a local company.

S ab e c o sa id in l at e November it aims to earn at least US$ 4.8 billion from the sale which kicks off Monday afternoon, with share prices set at a minimum of US$ 14.

Analysts said that valuation and timing may have kept more potential bidders away.

“The valuation in relation to the offering price is quite high, it needs strategic investors to justify that kind of valuation,” Phap Dang, senior research manager at Viet Capital Securities Joint Stock Company told AFP.

“The process from the time of the announcement of the stake sale until now is quite short, that might not be enough time for other companies to do (due diligence) on Sabeco. So that might have been a hindrance as well,” he added.

Some observers also said the foreign ownership cap of 49 per cent might have turned off potential international bidders who sought a majority stake.

The much- delayed sale comes as Vietnam’s cash- strapped government is seeking to raise funds by ‘equitising’ hundreds of state- owned enterprises – its term for privatisation – including its crown-jewel beer makers.

Though the country has seen solid economic growth of over five per cent over the past five years, public debts have soared to close to 65 per cent, the maximum allowed by by-law. — AFP