Sabeco beer production plant (Source: tinnhanhchungkhoan.vn)Hanoi (VNA) - The Ministry of Industry and Trade (MoIT) on December18 sold all of its 343.6 million shares or a 53.6 percent stake of the SaigonBeer, Alcohol and Beverage Corporation (Sabeco), receiving an estimated 110trillion VND (4.89 billion USD).
The auction, announced by Sabeco on November 29, drew attention from oneindividual investor and one institutional investor, both of which weredomestic.
The two investors had earlier registered to purchase more than 343.68 millionshares in total, 20,000 shares more than the amount offered for sale.
The successful average auction price was 320,250 VND (14.23 USD) per share,nearly unchanged from the initial pricing of 320,000 VND set by MoIT in lateNovember.
The individual investor purchased 20,000 Sabeco shares for 320,500 VND pershare while the institutional investor was able to scoop up the remainder for 320,000VND per share.
The institute was revealed as Vietnam Beverage Co Ltd, which had been reportedby local media to have signed up to buy at least 25 percent of Sabeco’s capitalat the share auction.
Nguyen Ngoc Lan, head of brokerage division at Agribank Securities Co,told tinnhanhchungkhoan.vn last week that if Sabeco was unable tosell shares at a much higher price than the initial auction price set by MoIT,it would not have big negative impacts on the market.
“Investors took the chance of that failure into account and such expectationshad already priced in Sabeco shares recently,” Lan said.
The benchmark VN Index on the HCM Stock Exchange on December 18 added 2.45 percentto close near 960 points.
Sabeco shares, listed on the southern trading bourse as SAB, rose as much as2.8 percent before closing flat at 309,200 VND per share on December 18.
At the end of last week, Sabeco shares had fallen 8.8 percent from its recordhigh of 339,000 VND per share after the sale plan was announced in lateNovember on concerns that the MoIT and the Government may not sell the sharesat higher price levels than the initial price of 320,000 VND.
As reported by cafef.vn, Vietnam Beverage with charter capital of 682billion VND, is wholly owned by Vietnam F&B Alliance Investment Company,which in turn is 49 per cent owned by BeerCo Ltd.
BeerCo Ltd is a subsidiary of Thai Beverage, which is controlled by tycoonCharoen Sirivadhanabhakdi.
According to Vietnam’s regulations, any foreign investor or business - in whichforeign investors hold more than 51 percent of capital – can only raiseownership in Sabeco to maximum 49 percent.
As 49 percent of Vietnam Beverage’s capital is owned by foreign investors, thecompany is not bound to that regulation.
According to Japanese news agency Asia Nikkei, the deal will help Thai Beverageexpand its market share to other countries with revenue from overseas marketsrepresenting 50 percent of the producer’s total revenue.
Sabeco now holds 40 percent of the Vietnamese beverage market, making Vietnam’slargest brewer a valuable target for Thai Beverage.-VNA
VNA
