A costly round

15 December 2017 By Clara Ferreira Marques Follow @ClaraMarquesRTR

A $4.6 bln bid from Charoen Sirivadhanabhakdi for 51 pct of Sabeco, maker of Bia Saigon, relies on political influence and a pliable local partner. That might help the ThaiBev owner to skirt foreign ownership rules, and wring out efficiencies to stack up a frothy valuation.

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A unit of Thai Beverage, Vietnam Beverage Company, has expressed interest in buying about 51 percent of Vietnam's state-owned brewer Saigon Beer-Alcohol-Beverage Corp, widely known as Sabeco, the country's trade ministry said on Dec. 13.

At current prices, a 51 percent stake is worth around $4.5 billion. The auction is due to be held on Dec. 18.

Vietnam announced on Nov. 29 that it was selling a stake of nearly 54 percent in Sabeco. The company is subject to a cap of 49 percent on foreign ownership.

ThaiBev is controlled by billionaire Charoen Sirivadhanabhakdi.

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