Vietnam brewer Sabeco will get sturdy response at Singapore investor roadshow: chairman

SINGAPORE (Reuters) – Vietnam’s greatest brewer Sabeco SAB.HM has obtained a robust response from potential suitors at an traders’ roadshow in Singapore, its chairman mentioned, as the federal government strikes nearer to finalizing a stake sale within the $9 billion maker of Bia Saigon and 333 brews.

FILE PHOTO: Cans of beer transfer alongside a manufacturing line at a manufacturing unit of Saigon Beer Company (Sabeco) in Hanoi, Vietnam June 23, 2017. REUTERS/Kham/File Photograph

Vo Thanh Ha mentioned the federal government is due shortly to publish particulars of a divestment plan for its practically 90 % stake in Saigon Beer Alcohol Beverage Corp, because the brewer is formally known as, as a part of a prolonged fund-raising train.

The sale has attracted curiosity from brewers in search of entry to one in every of Asia’s most-promising beer markets, which is already the second-most worthwhile for Dutch brewer Heineken NV (HEIN.AS). Vietnam’s per capita beer consumption is forecast to turn out to be one in every of Asia’s highest throughout the subsequent couple of years.

The sale might additionally present a template for extra deliberate privatizations together with that of peer Habeco BHN.HM.

“We met quite a few very high-profile traders – strategic traders and trade gamers,” Ha mentioned in an interview in Singapore.

“We’ve obtained superb suggestions from traders that they think about Sabeco as an especially good firm with excessive potential to develop,” Ha mentioned, in feedback translated from Vietnamese by an adviser for the roadshow.

Attendees on the Singapore roadshow included representatives of Japanese pair Kirin Holdings Co Ltd (2503.T) and Asahi Group Holdings Ltd (2502.T), mentioned Ha, who has been chairman for 2 years. He mentioned representatives of Vietnam’s Ministry of Trade and Commerce have been additionally current.

“The divestment is on schedule. The federal government will likely be publishing the plan to divest very quickly,” mentioned Ha, talking in a non-public bus en path to Changi Airport.

The roadshow will subsequent transfer to London and Ho Chi Minh Metropolis this week.

The federal government mentioned this month it goals to finish a stake sale in December, although it has but to reveal a measurement or worth. Complicating the method is a near-trebling of Sabeco’s share worth over the previous yr to 318,800 dong ($14), in contrast with a 40 % rise within the benchmark index .VNI to 10-year highs.

“The value is decided by the market,” mentioned Ha, when requested to touch upon the surge.

Some traders mentioned a small free float has inflated Sabeco’s market worth.

Sabeco dominates Vietnam’s beer market the place its major rivals are Heineken and state-owned Hanoi Beer Alcohol & Beverage JSC BHN.HM. Heineken owns 5 % of Sabeco.

Sabeco expects the introduction of premium merchandise to assist it keep a market share of 40 to 42 % over the following two or three years, Ha mentioned.

($1 = 22,715.0000 dong)

Reporting by Anshuman Daga; Extra reporting by Mai Nguyen; Modifying by Christopher Cushing

Our Requirements:The Thomson Reuters Trust Principles.

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