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Tag: Sabeco

  • Thai Beverage unit to bid for at least 25 percent of Sabeco

    Thai Beverage unit to bid for at least 25 percent of Sabeco

    A unit of Thai Beverage (TBEV.SI) has emerged as the only prospective bidder for state-owned shares in Sabeco (SAB.HM) that has declared that it could lead to it owning 25 percent or more of Vietnam’s biggest brewer, the Trade Ministry said on Monday.

    The auction of up to 54 percent of Sabeco worth at least $5 billion, in what is set to be Vietnam’s biggest privatization, offers brewers access to a fast-growing market with a youthful population and beer drinking culture.

    Investors who want shares that would lead to an ownership of 25 percent or more in Sabeco have to inform the local authorities and publicize the information a week before the auction date, which is set for December 18, according to the rules of the offer.

    Other brewing groups including Anheuser-Busch InBev and Kirin Holdings have been preparing to bid for a stake, people familiar with the matter have said.

    But the trade ministry said in a statement on its website that as of 1100 GMT on Monday the one prospective investor which has registered an interest in buying 25 percent or more of Sabeco that has publicized the information is Vietnam Beverage Company Limited.

    Vietnam Beverage Company Limited is owned by Vietnam F&B Alliance Investment Company, which is 49-percent owned by BeerCo Limited, an indirect but wholly-owned subsidiary of Thai Beverage, official documents about the companies showed.

    Foreign ownership in Sabeco is limited to 49 percent. That means overseas bidders can only bid for a minority stake of as much as 39 percent as foreign entities already own 10 percent.

    Lack of control and the unorthodox way in which the Sabeco stake is being sold could put off some possible bidders, bankers, investors and lawyers familiar with the matter said.

    The Vietnam trade ministry, which represents state shares in Sabeco, said foreign investors can link up with Vietnamese firms to buy shares in Sabeco, but have to comply with local laws and regulations.

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  • Philippines’ San Miguel says looking to bid for Vietnam’s Sabeco

    Philippines’ San Miguel says looking to bid for Vietnam’s Sabeco

    The Philippines’ San Miguel Corp (SMC.PS) is looking to bid for Vietnam’s largest brewer Sabeco (SAB.HM), the conglomerate’s president said on Wednesday.

    “Yes,” Ramon Ang said when asked if San Miguel is looking to join the bidding for the Vietnamese brewer.

    Vietnam said earlier on Wednesday it is open to selling a 54-percent stake in Saigon Beer Alcohol Beverage Corp, but capped foreign ownership at about 49 percent.

    Sabeco received a strong response from potential suitors at an investors’ roadshow in Singapore last week, its chairman Vo Thanh Ha said, as the government moves closer to finalizing a stake sale in the $9 billion maker of Bia Saigon and 333 brews.

    Ha said the government is due shortly to publish details of a divestment plan for its nearly 90 percent stake in Sabeco as part of a lengthy fund-raising exercise.

    The sale has attracted interest from brewers seeking access to one of Asia’s most-promising beer markets, which is already the second-most profitable for Dutch brewer Heineken NV (HEIN.AS).

    Vietnam is shaping up as a battleground for global brewers thanks to a youthful population and beer-drinking culture.

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  • Vietnam’s biggest brewer to sell majority stake

    Vietnam’s biggest brewer to sell majority stake

    Vietnam said Wednesday it would sell a majority stake in the country’s largest state-owned brewer next month but limit foreign ownership to 49 percent, as the government seeks to pay off public debt.

    The long-delayed sale shares in Sabeco, the leading brewer in the beer-obsessed nation, will take place in December and aims to raise $4.8 billion, according to a statement on the company’s website.

    More than 340 million shares – amounting to 54 percent of the company – are up for grabs, but foreign ownership will be capped to safeguard the local brand, the firm said.

    “Foreign investors are allowed to own a maximum of 49 percent of the registered capital of Sabeco,” the statement said.

    Some 10 percent of Sabeco is already foreign owned, with the rest belonging to the government.

    Prices will be set at a minimum of $14 a share at the sale scheduled for December 18, the company added.

    The brewer, which owns household beer names Saigon Special and 333, said it was committed to “maintaining and developing Vietnam’s beer trademark” in limiting foreign control of the company.

    The sale, which officials originally hinted might happen at the beginning of this year, is part of the government’s privatization push as it seeks to rein in mounting public debt.

    As part of the promised reform, shares of several state-owned enterprises are to be sold off, though plans have repeatedly stalled.

    Vietnam’s public debt hit 63.7 percent of GDP at the end of last year, and is predicted to inch up to 64.8 percent by the end of this year, according to official figures.

    The government-sanctioned debt ceiling is 65 percent of GDP.

    With a population of 93 million people, Vietnam is one of Asia’s leading per capita beer drinkers, including in Hanoi where ubiquitous “bia hoi” streetside beer markets fill daily with thirsty patrons.

    Crown jewels Sabeco and fellow state-owned firm Habeco are the country’s leading brewers, though some foreign players such as Heineken, Carlsberg and Sapporo also have a foothold in the market.

    Dizzying economic growth has seen per capita incomes in Vietnam more than double in the past decade to over $2,200 today, with newfound disposable incomes largely spent on consumable goods.

  • Australian brewer eyes Sabeco and Habeco shares

    Australian brewer eyes Sabeco and Habeco shares

    With the aim of expanding operations in Vietnam, Carlton & United Breweries (CUB) has become a new competitor in the race to seize the stakes in Hanoi Beer, Alcohol and Beverages Corporation (Habeco) and Saigon Beer, Alcohol and Beverages Corporation (Sabeco).

    The companies intentions were stated by CUB general director Jan Craps at the meeting of Deputy Prime Minister Vuong Dinh Hue and the delegation of Australian enterprises on July 24, according to newswire Vnexpress.

    According to Jan Craps, CUB plans to expand its operations in the southern province of Binh Duong and is looking to become the strategic investor of both Habeco and Sabeco.

    According to information released by the Ministry of Industry and Trade (MoIT) at its monthly press conference organised on July 14, the sale of state stakes will be carried out this year.

    Bui Truong Thang, deputy director general of MoIT’s Light Industry Department, said Habeco will submit its divestment plan to the ministry this week and Sabeco’s divestment plan will also be submitted before the end of the month.

    At present, Habeco signed with Bao Viet Securities Company (BVSC) and Vietnam Valuation and Finance Consultancy (VVFC), appointing them as the consultancy firms for the state divestment.

    Regarding Sabeco, according to unofficial information, a venture of BVSC, VVFC, and Earnst & Young Vietnam Limited was selected as the consultancy group for the state divestment.

    The state divestment from Sabeco and Habeco has also attracted numerous foreign investors. Notably, in November 2016, Thai Beverage Public Company Limited (Thai Beverage), Japanese Asahi Group Holdings Ltd. and Kirin Holdings Co. released their plans to bid for Sabeco’s shares.

    Several other foreign brewers have been eyeing Sabeco since it was earmarked for equitisation, such as San Miguel, Heineken, and SABMiller. The move is part of these companies’ overseas expansion plans to counterbalance shrinking domestic markets.

    Danish brewer Carlsberg, owning a 17.5 per cent stake in Habeco, also intends to increase its holdings.

    The reason for foreign investors’ interest in Habeco and Sabeco is that Vietnam ranked among the Top-10 beer consumption markets in the world at the end of 2016, with total consumption projected to grow by 10 per cent year-on-year, to reach four billion litres in 2017.

    Established in 1907, CUB is currently the largest beer brewer in Australia, holding 47 per cent of the beer market. Some of Australia’s most famous brands, including Victoria Bitter, Carlton Draught, Crown Lager, Melbourne Bitter, Pure Blonde and Cascade come from the company’s breweries. In 2011, the company joined the SABMiller group, the second largest brewer in the world.

  • Vietnam’s top brewer Sabeco tops up profit goal for 2017

    Vietnam’s top brewer Sabeco tops up profit goal for 2017

    The company expects its annual sales to rise 3 percent against last year. Vietnam’s biggest brewer Sabeco is aiming to push sales to more than 1.7 billion liters this year, an increase of 3 percent against 2016, in a bid to raise its annual revenue by 9 percent to VND34.5 trillion ($1.52 billion) and net profit by 1 percent to VND4.7 trillion ($207 million).

    The state-owned company also plans to raise its dividend payments from 30 percent to 35 percent, as agreed by its board of director.

    Those targets will be put on the table at a shareholder meeting on April 18.

    Company bosses said that price cuts on ingredients, a preferential tax policy on malt and stable market growth in rural areas, where Sabeco is the most competitive, are the reasons for the more positive targets.

    Sabeco, known for the Bia Saigon and 333 brands, is also preparing for fiercer competition on the domestic market following Belgium’s Anheuser-Busch InBev entry into the Vietnamese market.

    With the special consumption tax on beer and wine raised from 55 percent to 60 percent on January 1 this year, and set to climb to 65 percent in 2018, as well as a labeling regulation that’s still under discussion, Sabeco is concerned that the at production cost for each beer bottle will be rise by VND200.

    In its financial statement released last month, the brewer reported VND30.66 trillion in revenue last year, up 13 percent from 2015, and a profit of VND4.6 trillion ($205 million), a 33 percent jump.

    According to the Ho Chi Minh City Securities Corporation, Sabeco’s beer sales made up 43.3 percent of the domestic market share last year, a slight decrease compared to 43.9 percent of 2015. It predicted that the figure will edge up to 43.5 percent this year.

    The trade ministry announced in August last year that it planned to sell its entire stake in Sabeco, according to a government report.

    Under the plan, the ministry would have offered a 53.59 percent stake worth VND24.5 trillion ($1 billion) in 2016 before Sabeco made its market debut, and the remaining 36 percent stake worth VND16 trillion ($705 million) in 2017 after the listing.

    However, due to delays, the trade ministry failed to sell its first Sabeco shares as planned.

    Deputy Trade Minister Do Thang Hai told local media on Monday that over 641 million shares in Sabeco had been listed on HOSE on December 6 last year at a starting price of VND110,000 ($4.85) per share. As of April 3, prices stood at VND200,400 ($8.8) per share.

    Beer consumption in Vietnam rose 12 percent year-on-year to reach 3.8 billion liters in 2016, according to the trade ministry.

    Vietnam is Asia’s third largest beer consumer by volume after China and Japan.

    Industry experts expect annual growth of 4 to 5 percent over the next five years. The country’s annual beer output is forecast to hit 4.1 billion liters by 2020, according to government projections.a

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  • Vietnam’s top brewer Sabeco posts record profit in 2016

    Vietnam’s top brewer Sabeco posts record profit in 2016

    Together Sabeco and Habeco, both controlled by the state, account for about 60 percent of the domestic market. The country’s biggest brewer Sabeco has reported a profit of VND4.6 trillion ($205 million) for last year, a 33 percent jump from 2015 and 27 percent higher than its target, according to a statement filed at the Ho Chi Minh Stock Exchange.

    Saigon Beer Alcohol Beverage, as the company is officially known, just listed its shares on the country’s main bourse in December, eight years after its initial public offering. It reported VND30.66 trillion in revenue last year, up 13 percent from a year ago.

    Sabeco, one of a few state-owned companies which have performed relatively well, currently remains 89.59 percent owned by the government.

    With a share of nearly 41 percent of the domestic beer market, Sabeco is among the most sought-after companies by foreign investors, with suitors including Japan’s Kirin Holdings, Thai Beverage and Dutch beverage giant Heineken, according to an official from the trade ministry.

    In an attempt to accelerate the privatization of state-owned enterprises, the Vietnamese government said it would sell its entire stake in Sabeco this year.

    Meanwhile, Hanoi Beer Alcohol Beverage, or Habeco, posted a net profit of VND740 billion, down 20 percent from 2015.

    Habeco, with a 19.8 percent market share, is the third largest brewer in Vietnam, behind Sabeco with a market share of 41 percent and Heineken with 21.6 percent, according to the Vietnam Beverage Association.

    That means as combined, Sabeco, known for Bia Saigon and 333 brands, and Habeco account for about 60 percent of the domestic market.

    According to market research company Nielsen, while Sabeco has managed to raise its market share in northern provinces to 15.5 percent in the first half of last year from 10 percent in 2014, Habeco has failed to strengthen its dominant position in the north. The latter controlled 50 percent of the northern market in the first six months of last year, down from 55 percent in 2014.

    Beer consumption in Vietnam rose 12 percent year-on-year to reach 3.8 billion liters last year, according to the trade ministry.

    Vietnam is Asia’s third largest beer consumer by volume after China and Japan.

    Industry expects annual growth of 4 percent to 5 percent for the next five years. The country’s annual beer output is forecast to hit 4.1 billion liters by 2020, according to  government projections.

    The stock market debuts of both Sabeco and Habeco have been sped up in the government’s latest attempt to boost investment and increase transparency.

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