Saigon Beer has acquired a southern beer brand, the price is curious

Saigon Beer - Alcohol - Beverage Corporation - Sabeco (SAB) has just completed the purchase of 37.8 million SBB shares from Saigon - Binh Tay Beer Group, at a price of VND22,000/share.

The acquisition of Sabibeco could help Sabeco become the largest beer producer in Vietnam - Photo: SSB

According to a report sent to the Securities Commission on December 27, Sabeco said it had successfully purchased more than 37.8 million SBB shares of Saigon - Binh Tay Beer Group (Sabibeco) from 276 investors.

On the stock market, SBB shares are being traded at VND13,500 per unit. While Sabeco's public offering price is VND22,000 per share.

The total reported value of the deal is nearly VND832 billion, which Sabeco took from equity and other legal sources of capital.

Before the transaction, the total number and percentage of shares held by Sabeco and its related parties with SBB was 19.89 million shares, equivalent to 22.7% of the total outstanding shares.

After the acquisition, the total number and percentage of shares held by Sabeco and related parties at SBB is 57.7 million shares, equivalent to 65.9% of capital. Of which, Sabeco's ownership alone is 59.6%.

Saigon Binh Tay Beer (SBB) is the owner of the Sagota beer brand. The company's revenue in the first 9 months of this year reached more than 1,119 billion VND; however, it reported a loss after tax.

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, every year the profit has been negative. SBB's total assets at the end of September this year reached 2,272 billion VND.

Updating the SBB acquisition deal in the November 2024 report, Bao Viet Securities said that SBB is the affiliated unit with the largest production capacity, accounting for nearly 50% or 600 million liters/year, but still operating ineffectively.

This securities company's analysis team expects that from 2025, when it becomes a subsidiary of SAB, SBB will be allocated more processing output, along with other restructuring plans of the parent company, which will help improve the efficiency of this enterprise.

What is Saigon Beer's ambition?

According to FPT Securities Company (FPTS), the merger and acquisition (M&A) of Saigon Beer - Binh Tay helps increase Sabeco's total capacity to 3.01 billion liters/year, an increase of 25.4% compared to the current capacity.

Currently, Saigon - Binh Tay has 6 breweries with a total capacity of 0.61 billion liters/year. After completing the M&A, Sabeco will become the beer enterprise with the largest production scale in Vietnam.

Regarding Sabeco, the company's shareholder structure is currently quite concentrated with two major shareholders, Vietnam Beverage Company Limited (Thailand) and the Corporation, with ownership ratios of 53.6% and 36.0%, respectively.

Currently, Vietnam Beverage Company Limited is a subsidiary of ThaiBev Group - the largest beer company in Thailand. Therefore, ThaiBev Group holds control over SAB's business operations.

Source: https://tuoitre.vn/bia-sai-gon-thau-tom-xong-mot-thuong-hieu-bia-mien-nam-muc-gia-gay-to-mo-20241227143407776.htm