Saigon Beer begins to acquire Sagota beer brand, price 'more expensive' by several hundred billion

In the tender offer document, the owner of Saigon Beer Company said the average reference price of Saigon Binh Tay Beer shares was 15,200 VND, nearly 45% lower than the tender offer price.

Sabeco still said it could increase the price of SBB shares if necessary - Photo: SBB

Saigon Beer Company owner sets time to buy SBB shares

Saigon Beer - Alcohol - Beverage Corporation - Sabeco (SAB) has just announced a public offering to buy SBB shares of Saigon Binh Tay Beer Group Joint Stock Company (SBB).

Accordingly, the number of shares expected to be offered for purchase is more than 37.8 million shares, equivalent to 43.2% of the total number of voting shares of SBB at a public price of VND 22,000/share.

At the end of the session on October 25, SBB's market price on the stock market was 17,800 VND per share. Thus, Sabeco is offering to buy at a price nearly 24% higher than the market price.

In the tender offer documents, Sabeco said the average reference price of SBB shares in the two consecutive months before the date of submitting the public tender offer registration (from June 12 to September 5) was VND15,200.

Thus, at the price of VND22,000, Sabeco's bid price is 45% higher.

The expected time for the offering is from October 31 to December 25. The expected capital for implementation is nearly VND 834 billion.

If successful, the proportion of shares held by Sabeco will increase to more than 52.18 million units, accounting for 59.6% of the total outstanding shares of SBB.

Sabeco is currently a major shareholder at SBB with a holding ratio of 16.4%, equivalent to more than 14.37 million shares.

If including Sabeco's related parties, the total number of shares held is up to more than 19.89 million shares, equivalent to 22.7% of SBB's total outstanding capital.

Sabeco says it can still increase purchase price to suit the market

Previously, according to information from the Securities Commission, this agency sent a document to Sabeco on October 17 to give its opinion on the above mentioned registration dossier for the purchase offer.

According to the management agency, organizations and individuals participating in the process of preparing documents must be responsible for accuracy, honesty and completeness.

The Commission also requested Sabeco to report the results of the public offering as prescribed.

According to the tender offer documents, Sabeco said that during the tender offer process, SAB can increase the tender offer price (if necessary) to ensure the company's interests and to suit the market situation.

The owner of Saigon Beer also set out conditions for canceling the purchase offer, including canceling the purchase if the number of SBB shares registered for sale does not reach the minimum ratio, which is more than 25.12 million shares - equivalent to 28.7% of total outstanding shares, or SBB reduces the number of voting shares.

If the deal is successful as expected, Sabeco will increase its ownership in Saigon Binh Tay Beer to 65.9% and become the parent company of the Sagota beer brand.

The securities company acting as agent for Sabeco's acquisition is Vietcap Securities Joint Stock Company (VCI).

Both Sabeco and Saigon Binh Tay Beer have not announced their business results for the third quarter of 2024. In the audited consolidated financial report for the first half of 2024, Sabeco recorded more than VND 15,378 billion in revenue, an increase of 5% compared to the first 6 months of last year.

Management said the economy improved in the first half of the year, but the implementation of Decree 100 remained strict and market competition was increasingly fierce. Net revenue was higher than the same period in 2033 mainly due to the positive impact of price increases.

As a result, Sabeco's after-tax profit was about VND2,342 billion, up 6%.

What is the size of Saigon Binh Tay Beer's assets?

Saigon Binh Tay Beer (SBB) is the owner of the Sagota beer brand. The company's revenue in the first 6 months of this year reached 635 billion VND, up 13% over the same period; after-tax profit was -91.8 billion VND, while in the same period it still had a profit of nearly 32 billion VND.

Looking back at a longer data range, it can be seen that before the pandemic (2009 - 2019), SBB had quite good profits, regularly earning several hundred billion VND. However, from 2020 to now, profits have been negative every year.

SBB's total assets at the end of June this year reached VND2,327 billion, down from nearly VND2,500 billion at the beginning of the year.

Equity is at 1,877 billion VND, while undistributed profit after tax is still nearly 70 billion VND. Meanwhile, SBB's charter capital is 875 billion VND.

Source: https://tuoitre.vn/bia-sai-gon-bat-dau-thau-tom-thuong-hieu-bia-sagota-gia-dat-hon-vai-tram-ti-20241025183223173.htm