Selling state capital in 'two giants': Saigon Beer and Hanoi Beer

The State has a plan to divest capital from Saigon Beer Alcohol Beverage Corporation - Sabeco (stock code SAB) and Hanoi Beer Alcohol Beverage Corporation - Habeco (stock code BHN).

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Specifically, the form of divestment is expected to be open for bidding. The divestment plan in Habeco and Sabeco will be presented next week, with Sabeco due before July 31.

“The Ministry of Industry and Trade will sell state capital in 2017. The state divestment consultancy unit is developing a divestment plan at Sabeco, and Habeco is completing the divestment plan submission,” said Mr. Thang.

The State currently owns 89.59% of Sabeco’s capital and 82% of Habeco’s capital. These two beer companies currently account for a total of about 60% of the domestic beer market share, of which Sabeco’s market share is “overwhelming” with about 40% of the market share.

Produced at Saigon - Nghe Tinh Beer Joint Stock Company. Photo: Duc Anh

Regarding the plan to sell state capital at Sabeco, Chairman of the Board of Directors Vo Thanh Ha affirmed that this is the most important task that the Board of Directors of Sabeco has set out in the action goals for 2017. The capital sale will be implemented in accordance with the direction of the Government and the Ministry of Industry and Trade.

At the same time, the company will focus on brand development, ensuring shareholder rights as well as position in the domestic beer market.

The Philippines’ largest beer company has recently expressed interest in buying back the state’s divestment stake in Sabeco, part of San Miguel’s $34 billion investment plan.

In 2017, Sabeco plans to sell 1.664 billion liters of beer, up 4.7% compared to the plan. Total consolidated revenue is 34,471 billion VND, profit after tax is about 4,703 billion VND. The expected dividend rate is 35%, paying 9,2632 billion VND to the budget.

On Habeco's side, divestment is facing difficulties in the cooperation agreement with Carlsberg Breweries A/S. Mr. Dang Quyet Tien - Deputy Director of the Department of Corporate Finance (Ministry of Finance), said that the divestment of state capital in Sabeco, Habeco and other large state-owned enterprises will be done gradually, with a roadmap so as not to disrupt the market.

According to Bach Duong/vneconomy