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
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http://www.ocbcresearch.com/
2016-09-23
OCBC Investment
SGX Stock
Analyst Report
1.010
Same
1.010
