Government to sell its shares in Vietnam’s largest brewer
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The government plans to sell its 36 percent stake in the country’s largest brewer, Sabeco, this year. The Saigon Beer Alcohol Beverage Corp (Sabeco) is one of 139 enterprises in a new list in which the government’s stakes will be sold by sovereign fund State Capital Investment Corporation.
The Ministry of Industry and Trade (MoIT) has been instructed to transfer the government’s stakes in these enterprises to the SCIC by August 31. The government had sold a 53.59 percent stake in Sabeco to ThaiBev for over $5 billion in 2017.
The news puts paid to speculative claims made by some media outlets in early June that MoIT was seeking to reacquire Sabeco shares from ThaiBev due to “unexpected pandemic effects.”
At the end of 2019 the maker of Saigon Beer had assets estimated at VND 26.96 trillion ($1.2 billion) and owner’s equity of VND20.07 trillion ($870 million).Sabeco recently scaled down its revenue target for this year by 37 percent to VND23.8 trillion ($1 billion) and post-tax profit target by 39 percent to VND3.2 trillion ($138 million), the lowest in six years.
Questions & Answers
Q.Which government body is responsible for selling the government's remaining shares in Sabeco?
Which government body is responsible for selling the government's remaining shares in Sabeco?
The Ministry of Industry and Trade (MoIT) has been instructed to transfer the government's stakes in these enterprises to the State Capital Investment Corporation (SCIC) by August 31, which will then sell them.
Q.What is the deadline for the government to transfer its enterprise stakes to the State Capital Investment Corporation?
What is the deadline for the government to transfer its enterprise stakes to the State Capital Investment Corporation?
The Ministry of Industry and Trade has received instructions to transfer the government's stakes in 139 enterprises, including Sabeco, to the State Capital Investment Corporation by August 31.
Q.What was the reason for some media speculation about the Ministry of Industry and Trade reacquiring Sabeco shares?
What was the reason for some media speculation about the Ministry of Industry and Trade reacquiring Sabeco shares?
Some media outlets had speculated in early June that the Ministry of Industry and Trade was seeking to reacquire Sabeco shares from ThaiBev due to "unexpected pandemic effects".
Q.How have Sabeco's financial targets changed for the current year?
How have Sabeco's financial targets changed for the current year?
Sabeco recently reduced its revenue target for this year by 37 percent to VND23.8 trillion ($1 billion). Its post-tax profit target was also cut by 39 percent to VND3.2 trillion ($138 million), which is the lowest in six years.
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