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Sabeco (SAB) boosts portfolio through acquisition of two brewers
Sabeco plans to invest nearly VNĐ1 trillion (US$39.4 million) to boost its stake in two companies: Saigon Bình Tây Beer Group JSC (Sabibeco) and Saigon Western Beer JSC (WSB) in the next two months.
A processing line of Sabeco. — Photo courtesy of the company
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To enhance its ownership in Sabibeco (SBB) and expand the group's operations, Sabeco aims to conduct a public offer to purchase more than 37.8 million SBB shares, representing 43.2 per cent of the total voting shares.
The offer price is fixed at VNĐ22,000 per share, requiring approximately VNĐ832 billion for the acquisition, financed through equity and other legitimate capital sources.
This offering price stands 29 per cent above SBB's current market value, given that Sabibeco shares are presently under trading restrictions.
The tender offer period spans from October 31 to December 25. During this interval, Sabeco retains the option to adjust its bid price as needed.
Nonetheless, the offer may be retracted if the registered share volume fails to meet the minimum threshold of 28.7 per cent of outstanding shares, if Sabibeco reduces its voting shares, issues new shares, convertible bonds, or warrants, or sells assets worth 35 per cent of its total asset value.
Presently, Sabeco holds a significant stake in Sabibeco, possessing 16.4 per cent of the shares. Its subsidiary, Bình Tây Liquor JSC, holds more than 5.5 million SBB shares, equivalent to 6.3 per cent.
Upon successfully acquiring the target volume, Sabeco will boast a direct stake of 59.6 per cent in Sabibeco, with an aggregate ownership of 65.9 per cent for Sabeco and affiliated entities.
This acquisition would position Sabibeco as a subsidiary of Sabeco, expanding the total count of Sabeco subsidiaries to 27.
Sabeco also aims to increase its ownership in another subsidiary, Saigon Western Beer.
In particular, Sabeco intends to buy an additional 2 million WSB shares through negotiated transactions from October 28 to November 25, elevating its stake in the brewer from 70.55 per cent to 84.46 per cent.
With WSB shares trading at VNĐ50,900 on the UPCoM exchange as of October 25, Sabeco anticipates an investment exceeding VNĐ100 billion for this transaction.
While Saigon Western Beer maintains stable financial performance, boasting total assets of VNĐ949 billion and a debt to equity ratio of 22 per cent as of September 30, the company generated VNĐ704 billion in net revenue and VNĐ58.8 billion in net profit for the first nine months of 2024.
Conversely, Sabibeco has not disclosed its third quarter financial report in 2023 yet but has been facing losses since 2020.
In the first half of 2024, it reported a net loss of VNĐ88 billion, surpassing the VNĐ52 billion loss from the same period in the previous year.
On the stock market, shares of all three brewers ended flat on Monday.
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