06:23 (GMT +7) - Saturday 19/09/2020


Calls for government to divest from beverage firms

Released at: 17:00, 12/05/2016

Calls for government to divest from beverage firms

Vietnam Association of Financial Investors submits documents to Minister of Industry and Trade on State selling it holdings in Sabeco and Habeco.

The Vietnam Association of Financial Investors (VAFI) has proposed the government divest the State holdings in Vietnam’s two largest beverage companies: the Saigon Beer-Alcohol-Beverage Joint Stock Corporation (Sabeco) and the Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco).

VAFI has submitted documents to new Minister of Industry and Trade Tran Tuan Anh on the management of State capital in the two leading brewers.

The ministry currently holds 90 per cent and 82 per cent of Sabeco and Habeco’s charter capital, respectively.

The divestment would help the State gain $3 billion, VAFI explained, which would be sufficient to immediately carry out construction of Urban Railway Lines No. 3 and No. 4 in Hanoi. Hanoi having four railway lines, which is expected seven years from now, would facilitate the rapid development of public transport and reduce traffic congestion, making the capital a green, clean and beautiful city.

The association also said the divestment process should be conducted via auctions to ensure transparency and create a fair playing field for major investors.

In late 2014 Thai Beverage, owned by Thai billionaire Charoen Sirivadhanabhakdi, repeatedly expressed a desire to purchase a stake in Sabeco and assessed its brand value at $2 billion, but its interest came to nothing.

Carlsberg, who holds 17.23 per cent of Habeco, also expressed a desire to acquire a further 13 per cent and bring its holding to over 30 per cent. 

Sabeco and Habeco current hold beer market shares of 46 per cent and 17.3 per cent, respectively, in Vietnam.

User comment (0)

Send comment