Vietnamese drinks company THP thirsts to sell stake
Vietnamese drinks company THP thirsts to sell stake
Tea and energy-drink company Tan Hiep Phat may secure an up to $2 billion valuation A Vietnamese seller of beverages ranging from teas to energy drinks, is seeking to sell a minority stake in a deal that could value the large privately-owned company at up to $2 billion, according to people familiar with the situation.
Tan Hiep Phat, owned by Vietnamese tycoon Tran Quy Thanh, may sell a stake to a foreign investor to fund expansion plans for the business, people familiar with the situation said. The company has hired a foreign investment bank to advise on the sale plan, the people said.
THP is one of the largest privately-owned consumer-goods companies in Vietnam, selling bottled Zero Degrees Green Tea with Lemon, Dr. Thanh Herbal Tea and Number 1 Energy Drink.Founded in 1994, the Binh Duong-headquartered company sells its products in 16 countries including Australia, Canada and China, and employs more than 4,000 staff. It operates four factories in Vietnam.
A person familiar with the situation said that THP’s stake-sale plan is still at an exploratory stage and a deal may or may not happen. Mr. Thanh didn’t reply to a request for comment.
If successful, a deal would add to a flurry of M&A activity in Vietnam, which has seen many foreign investors snapping up stakes in consumer-focused companies, aiming to profit from the country’s fast-growing middle class. Deals valued at $1.8 billion have taken place in Vietnam so far this year, the most in at least eight years over the year-to-date period, according to data from Dealogic.
Late last year Singha Group, owned by Thailand’s seventh richest man and maker of the namesake beer, made the largest foreign investment in Vietnam to date when it acquired stakes in some of the subsidiaries of Masan Group, one of Vietnam’s largest private companies. Singha paid $1.1 billion to buy strategic stakes in Masan Consumer Holdings and Masan Brewery.
Meanwhile, French retailer Groupe Casino SA is seeking buyers for retail assets it owns in Vietnam and has attracted several potential buyers from Thailand to Japan.
Despite economic struggles, Vietnam is seen as one of Asia’s most potent growth markets. Vietnam benefits from a young population and a booming export sector that is taking business from higher-cost countries, in particular China. Vietnam’s economy is expected to grow 6.7% this year, the same pace as in 2015, and its stock market was one of the best performers in Southeast Asia last year, up 6%.
