SAB to entice investors in Singapore, London
SAB to entice investors in Singapore, London
Sai Gon Beer – Alcohol – Beverage Corporation, better known as Sabeco, will hold roadshows in two major financial markets – Singapore and London – in an effort to draw foreign investors to one of the biggest State capital divestments.
This is the first time the Ministry of Industry and Trade (MoIT) has organised international travel to present the investment opportunity offered by the State’s divestment plans. The MoIT currently holds 89.59 per cent of Sabeco’s charter capital.
At the roadshows, Sabeco’s representatives will discuss the company’s business performance, including its financial situation in the last three years, the factory system, subsidiaries and joint ventures, distribution network and branding and marketing, as well as production and business plans for the future.
On November 15, the MoIT announced its plan to sell State capital in the brewer, without disclosing the information of the time and of the share sale, the initial selling price and the number of shares that will be offered to foreign investors.
The sale will reportedly be held as a competitive offering of shares among eligible investors in accordance with the regulations set by the MoIT, which stipulate that the sale will be open to both domestic and foreign investors.
MoIT said the divestment would aim to maximize transparency, ensure the highest benefits to the State, secure foreign ownership in accordance with law and propose solutions to preserve and develop the Vietnamese beer’s brand name.
The ministry will present the detailed plan for the share sale by the end of next month.
The meeting with potential investors in Singapore will take place on November 24 at the Ritz Carlton, while the event in London will be held on November 27 at Hilton on Park Lane Hotel.
Trillion-dong share sale
The sale is forecast to be worth up to trillions of Vietnamese dong and will attract great attention from both domestic and foreign investors given the company’s industry-leading position.
Shares of Sabeco (coded SAB) climbed 4.4 per cent to VND293,000 (US$12.85) per share, being the most expensive stock on the HCM Stock Exchange on Tuesday after the information about the roadshows was released. Its shares have soared 97.6 per cent this year.
The company’s market capitalisation was valued at about $8.24 billion, behind Vinamilk and VinGroup.
Sabeco is Viet Nam’s largest beer producer, holding about 40.9 per cent of the nation’s $6.5 billion beer market. The country is among the top three countries for beer consumption in Asia.
Sabeco’s profits have expanded steadily in the last three years with an average growth of about 24 per cent per year. Beer is the source of over 85 per cent of the company’s revenues thanks to strong sales of popular brands including Saigon and 333.
Sabeco’s net profit hit nearly VND4.48 trillion last year and is on track to reach its annual target of VND4.7 trillion by the end of 2017.
