Thai Beverage - OCBC Investment 2016-09-23: SABECO has sought approval for stock listing

Thai Beverage - OCBC Investment 2016-09-23: SABECO has sought approval for stock listing THAI BEVERAGE PUBLIC CO LTD Y92.SI

Thai Beverage - SABECO has sought approval for stock listing

  • As various media outlets have revealed, Thai Beverage has joined several major foreign brewers in a bid for a stake in Vietnam’s largest brewer SABECO (Saigon Beer, Alcohol, Beverage Corporation). 
  • In a recent update, SABECO has filed documents to seek approval from the Ministry of Industry and Trade to join the Vietnam Stock Index (VN-Index) as the government would want the market to determine the price of stakes in SABECO, while the deal is expected to be worth at least US$1.8b. 
  • Following its listing, the divestment of SABECO will be done in two tranches, whereby the government will auction 53.59% in the company this year and the remainder of the stake in 2017. Articles also suggest the government is looking for the highest bidder. 
  • All considered, on stiff competition and uncertainties, we prefer to wait out on this development and keep our assumptions unchanged. 
  • We maintain our HOLD rating and fair value estimate of S$1.01, while longer term investors may consider accumulating at current price levels.




Jodie Foo CFA OCBC Investment | http://www.ocbcresearch.com/ 2016-09-23
OCBC Investment SGX Stock Analyst Report HOLD Maintain HOLD 1.010 Same 1.010

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