Government to sell stake in country’s biggest brewery

04-Jul-2020 Intellasia | The Saigon Times | 6:02 AM Print This Post

The Vietnamese government will sell its 36 percent stake, equivalent to 230.8 million shares worth some VND37.6 trillion (US$1.6 billion), in the Saigon Beer-Alcohol-Beverage Corporation (Sabeco), the country’s biggest brewery, this year.

The Ministry of Industry and Trade has been asked to transfer the government’s stake in Sabeco to the State Capital Investment Corporation before August 31.

Early last month, the ministry refuted a rumour stating that it would buy back 53 percent of Sabeco’s shares from the Thai Beverage Public Company Limited (ThaiBev). In a document sent to the Singapore Exchange on May 29, on which ThaiBev is listed, the Thai investor also confirmed that it is not seeking buyers for Sabeco’s shares.

In late 2017, ThaiBev spent over $4.8 billion buying 53.59 percent of Sabeco’s shares from the Ministry of Industry and Trade.

After the deal, Sabeco operated efficiently until the government issued Decree 100 banning drunk driving, followed by the Covid-19 outbreak, which saw the company’s revenue and profit fall in 2019 and the early months of 2020.

Regarding the business plan for this year, Sabeco expects to generate VND23.8 trillion in net revenue, the lowest since 2012, and VND3.252 trillion in after-tax profit, a year-on-year decrease of 37 percent and 39%, respectively.

Sabeco is one of the 139 enterprises from which the government will sell its stake this year, according to VnExpress news site.

https://english.thesaigontimes.vn/77439/government-to-sell-stake-in-country%e2%80%99s-biggest-brewery.html

 


Category: Business, Vietnam

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