Vietnam brewer Sabeco lifts foreign ownership cap
In this article (4)
Vietnam’s largest brewer Sabeco says it has removed its foreign ownership limit, in a statement on its website Monday. The company, known for its Bia Saigon and 333 brand, said that its board of directors had issued a resolution on Oct. 30 that approves “unrestricted foreign ownership percentage in Sabeco.”
Last December, Thai Beverage acquired a 53.59 percent stake in Sabeco from Vietnam’s Ministry of Industry and Trade for $4.84 billion through a local entity, Viet Beverage (VietBev).
Under the government’s Decree 60 dated June 26, 2015, listed companies, except those working in conditional business fields like banking, are allowed to determine their foreign ownership cap. They just need to register the limit with the State Securities Commission.
The Ministry of Finance last week presented a draft securities law that would remove the current 49 percent foreign ownership cap in many sectors, except some conditional sectors.
However, the draft has not been finalized and submitted to the National Assembly for approval.
In Vietnam, conditional sectors refer to industries subject to additional regulations that would override limits set out by the securities law.
Sabeco, formally known as Saigon Beer Alcohol Beverage Corp, recorded revenues of VND25.5 trillion ($1.1 billion) in the first nine months of this year, meeting 70 percent of its annual target.
It occupies approximately 42.8 percent of the domestic beer market, according to the Ho Chi Minh City Securities Corporation. Last year, it produced nearly 1.8 trillion litres of beer.
Questions & Answers
Q.What is the primary reason Sabeco has removed its foreign ownership limit?
What is the primary reason Sabeco has removed its foreign ownership limit?
Sabeco's board of directors issued a resolution on October 30 approving an unrestricted foreign ownership percentage. Under government Decree 60, listed companies, except those in conditional business fields, can determine their own foreign ownership cap.
Q.How did Thai Beverage acquire its stake in Sabeco, and what was the value of this deal?
How did Thai Beverage acquire its stake in Sabeco, and what was the value of this deal?
Thai Beverage acquired a 53.59 percent stake in Sabeco last December from Vietnam's Ministry of Industry and Trade. The acquisition was made for $4.84 billion through a local entity called Viet Beverage.
Q.What is Sabeco's market position and recent financial performance?
What is Sabeco's market position and recent financial performance?
Sabeco is Vietnam's largest brewer, holding approximately 42.8 percent of the domestic beer market. In the first nine months of this year, it recorded revenues of VND25.5 trillion ($1.1 billion), meeting 70 percent of its annual target.
Reader pulse
Sabeco's move is...
23,903 votes so far