Vietnam's leading beer producer, Sabeco, majority owned by ThaiBev, has now revealed details concerning a takeover bid for the country’s third largest brewing company Sabibeco (inside.beer, 10.09.2024). The company is set to invest nearly VND 1 trillion (USD 39.4 million) to increase its stake in two prominent companies, Saigon Bình Tây Beer Group JSC (Sabibeco) and Saigon Western Beer JSC (WSB), over the next two months. This strategic move was reported by Viet Nam News on October 29.
Sabeco plans to make a public offer to acquire over 37.8 million shares of Sabibeco, which represents 43.2% of its total voting shares. Priced at VND 22,000 (USD 0.87) per share, this acquisition would require an estimated VND 832 billion (USD 32.9m), funded through Sabeco’s equity and other legitimate financial resources. This offer price reflects a 29% premium over Sabibeco’s current market value, as trading of its shares remains restricted.
The public offer will be active from October 31 to December 25, during which Sabeco reserves the right to adjust the bid price if needed. However, Sabeco may withdraw the offer if certain conditions are not met, including if less than 28.7% of the shares are tendered or if Sabibeco reduces its voting shares, issues new shares or convertible instruments, or sells significant assets.
Sabeco currently holds a 16.4% direct stake in Sabibeco, with its subsidiary Bình Tây Liquor JSC owning an additional 6.3%. A successful acquisition would boost Sabeco’s direct stake in Sabibeco to 59.6%, increasing combined ownership for Sabeco and its affiliates to 65.9%. This move would turn Sabibeco into Sabeco's subsidiary, raising Sabeco’s total number of subsidiaries to 27.
In parallel, Sabeco intends to increase its stake in Saigon Western Beer by purchasing an additional 2 million shares through negotiated transactions between October 28 and November 25. This would elevate Sabeco’s ownership in WSB from 70.55% to 84.46%, with an expected investment exceeding VND100 billion (USD 4m), given WSB’s share price of VND 50,900 (USD 2.01) as of October 25 on the UPCoM exchange.
Financially, Saigon Western Beer has shown stability, with assets totaling VND 949 billion (USD 37.5m) and a debt-to-equity ratio of 22% as of September 30. The company reported net revenue of VND 704 billion (USD 27.8m) and a net profit of VND 58.8 billion (USD 2.3m) for the first nine months of 2024.
In contrast, Sabibeco has faced continued losses since 2020, reporting a net loss of VND 88 billion (USD 3.5m) for the first half of 2024, exceeding the VND 52 billion (USD 2m) loss in the same period of 2023.
