• Home »
  • M&A News »
  • Vietnam eyes 5 billion USD from privatization of state-owned brewery Sabeco

Vietnam eyes 5 billion USD from privatization of state-owned brewery Sabeco

SabecoThe Vietnamese government plans to sell the controlling stake of 53.59% of its largest national brewery Saigon Beer Alcohol Beverage Corp (Sabeco). The local authorities own total 343.3 million shares and the initial offering price is 320 Vietnamese dongies per share (14.1 USD). This makes the total volume of the deal of approximately 4.85 billion USD.

The so called “road show” before the offering includes national and international investors. Under the terms of the exchange offer, 49% of the offered shares are reserved for foreign investors.

The country’s biggest-ever and long-delayed state sale, set for Dec. 18, has already attracted interest from brewers seeking access to one of the world’s most attractive beer markets and the largest in Southeast Asia. Many foreign firms from Japan’s Asahi Group Holding to Belgium’s AB Inbev have shown an interest in Sabeco, or Saigon Beer Alcohol Beverage Corp, since it was earmarked for privatization. Dutch brewer Heineken currently holds a 5 percent stake in the Vietnamese firm.

Foreign investors are limited to a 38.59% stake in the brewer. Combined with the 10.4% already held by investors from overseas, that would hit the foreign ownership cap imposed by Vietnam on some public companies.

Currently, the state holds 90% of the company’s shares traded on the Vietnam Stock Exchange. The market capitalization of Sabeco is estimated at 9 billion USD.