Sabeco converted into foreign-owned firm

ThaiBev in an announcement recently published on its website said that it has restructured a loan from BeerCo Limited, an indirect wholly-owned subsidiary of ThaiBev, to Vietnam Beverage Co., Ltd. Vietnam Beverage had acquired shares of Sabeco in December 2017.

Specifically, Vietnam Beverage and Beerco struck a deal to convert the entire amount of loan and interest, worth VND111.209 trillion (equivalent to US$4.89 billion at the applicable exchange rate of US$1 to VND22,730) into additional charter capital of Vietnam Beverage.

Also, Vietnam Beverage was approved to raise its charter capital to VND111.890 trillion from VND682 billion by the Hanoi Department of Planning and Investment.

As a result of the completion of the loan conversion, BeerCo currently holds US$4.89 billion (or 99.39%) of the charter capital of Vietnam Beverage.

In addition, the loan conversion will therefore help reduce the nation’s foreign debt by nearly US$5 billion, as well as convert Vietnam Beverage to a foreign firm from a domestic firm.

Accordingly, the foreign ownership in Sabeco will rise to 63.35%, including the current 9.76% stake held by foreign investors and the ownership amount of Vietnam Beverage.

The four legal representatives of Vietnam Beverage comprise Tran Kim Nga, Michael Chye Hin Fah, Lee Man Kong, and Nantika Ninvoraskul.

According to ThaiBev, it pledged to keep doing good business to double Sabeco’s revenue in the coming period for ensuring the benefit of the shareholders of Sabeco, in terms of share price and annual dividend.

Earlier, Sabeco on December 3 last year was approved to increase the foreign ownership to 100% by the State Securities Commission of Vietnam, which paved the way for ThaiBev to restructure the loan of Vietnam Beverage.

The controlling ownership in Sabeco has built up the already thick investment portfolio of the Thai billionaire Charoen Sirivadhanabhakdi, who is Sabeco’s boss.

To date, he currently owns MM Mega Market Vietnam (previously Metro Vietnam), Phu Thai Group, the Mélia Hanoi hotel, Me Linh office building, and 20% stake in Vietnam’s leading dairy processor Vinamilk.