HANOI/SINGAPORE: Thai Beverage, through a Vietnam unit, has emerged as the only bidder which has registered to own at least 25% of the nation's top brewer, Sabeco, in which the government is selling a US$5-billion stake.
Last month, Vietnam announced its biggest-ever and long-delayed state sale of Sabeco, or Saigon Beer Alcohol Beverage Corp and said it was open to selling a stake of nearly 54%, but retained a cap of 49% on foreign ownership.
Citing people familiar with the matter, Reuters reported on Sunday that brewing groups including ThaiBeverage, Anheuser-Busch InBev, Kirin Holdings, Asahi Group Holdings and San Miguel were interested in the auction.
The people had said that ThaiBev, controlled by tycoon Charoen Sirivadhanabhakdi, was shaping up as a strong contender, as it was familiar with the Vietnam system and saw Sabeco as key to expanding outside its home market.
"ThaiBev had been planning to buy into Sabeco long before the formal sales process kicked off. They seem to have ticked all the right boxes," a source, who declined to be identified as he was not authorised to speak to the media, said on Tuesday.
On its website, Vietnam's Trade Ministry said Vietnam Beverage Company Ltd, a unit of ThaiBev, was the only investor to register an interest to own 25% or more of Sabeco as of 6pm on Monday. It did not give any details.
Sabeco's shares jumped by the daily limit of 7% in early trade to stand at 313,000 dong ($13.8). The shares have nearly trebled since listing a year ago, with analysts citing a small float as inflating its market value.
The Sabeco auction is on Monday, and bidders keen to own a stake of 25% or more of Sabeco's shares need to inform local authorities a week ahead.
Sabeco's foreign ownership cap limits overseas bidders to a minority stake of up to 39%, as foreign entities already own 10%.
Vietnam Beverage Company Ltd is owned by Vietnam F&B Alliance Investment Company, which is in turn 49% owned by BeerCo Ltd, an indirect wholly-owned subsidiary of ThaiBev, official documents on the companies showed.
ThaiBev had no immediate comment and shares in the Singapore-listed company were halted for trading pending an announcement.
Lack of control, the unorthodox manner of the sale of the Sabeco stake and sky-high valuations could put off some possible bidders, bankers, investors and lawyers said.
It was not immediately clear if other potential bidders for Sabeco had decided to bid for stakes of less than 25% or if they would sit out the auction.
Vietnam's Trade Ministry, which represents state shares in Sabeco, has said foreign investors can link up with Vietnamese firms to buy shares in Sabeco, but have to comply with local laws and regulations.