Thai Beverage Public Company

[greengiraffe]

Heineken sets beer deal talk bubbling but owners brush off deal

Brewer’s share prices rise after Dutch group rejects approach from rival SABMiller

Despite the Heineken family’s stance – it said it wanted to “preserve the heritage and identity of Heineken as an independent company” – it could come under pressure from other shareholders not to reject a future approach so swiftly. Photograph: Reuters/Stephen Hird
Despite the Heineken family’s stance – it said it wanted to “preserve the heritage and identity of Heineken as an independent company” – it could come under pressure from other shareholders not to reject a future approach so swiftly. Photograph: Reuters/Stephen Hird
Topics:
Business
Food
Alan Clark
Trevor Stirling
Anheuser-Busch
Heineken
InBev
SABMiller
Africa
Colombia
Tue, Sep 16, 2014, 01:00
First published:
Tue, Sep 16, 2014, 01:00
With a history stretching back 150 years, Heineken describes itself as “a proud, independent global brewer”. SABMiller, its bigger British rival, was left in no doubt of that sentiment after a lofty brush-off from the Dutch company, now controlled by the fourth generation of its founding family.
The disclosure that the maker of Peroni, Miller Lite and Pilsner Urquell had made a preliminary approach to Heineken to combine the world’s second- and third-largest brewers, sparked a rise in brewers’ share prices yesterday.
SABMiller’s share price leapt as much as 13 per cent, boosted by a revival of rumours that Anheuser-Busch InBev, the biggest brewer, was preparing to raise money to bid for the London-based group. One person familiar with the Belgian-American brewer cooled such speculation, saying no talks over financing for SAB were taking place.
Despite the Heineken family’s well-known stance – reiterated in a statement on Sunday night that it wanted to “preserve the heritage and identity of Heineken as an independent company” – it could come under pressure from other shareholders not to reject a future approach so swiftly. Heineken is controlled by Heineken Holdings, through the latter’s 50.005 per cent stake. The family owns 51.7 per cent of Heineken Holdings, which gives it control of the brewer, but leaves 77 per cent of the share capital in the hands of non-family members.
Attractive target
Trevor Stirling, analyst at Bernstein Research, points out that a merged SABMiller-Heineken would not be without its troubles, given regulatory problems in some markets and tricky joint venture agreements. But there are also good reasons for SABMiller to regard Heineken as an attractive target.
First, it would give the British brewer the global beer brand that, alone among the big four, it lacks. Second, Heineken’s diversification to emerging markets makes it more attractive to SABMiller. Heineken now makes 60 per cent of its operating profits in emerging markets and has a 50-50 sales split between developed and emerging markets.
Third, combining with Heineken would increase SABMiller’s position in Africa, especially in Nigeria, where Heineken has a market share of 65 per cent, and in Mexico, where Heineken beat SABMiller in the 2010 auction for the beer assets of Femsa, the Mexican drinks group.
Finally, the combined group would find itself on an equal footing with AB InBev, which has 21 per cent of the global beer market. (Copyright The Financial Times Limited 2014)

[CityFarmer]

The company FY2013 revenue is Bt160 billion, and the target is Bt700 billion in 2020, more than 4x in 7 years. What a ambitious plan!

Obviously F&N alone isn't enough to fulfill the goal, and more M&A is the pipeline?

(not vested)

Group wants to become a total beverage giant within Asean

Thai Beverage has set aside an investment budget of more than Bt30 billion for 2015-20 to boost total revenue by nearly Bt700 billion in 2020.

This is a part of the group's goal to become a total beverage firm in Asean by 2020. The investment budget does not cover investments for mergers and acquisitions in both domestic and overseas markets, and building brands in the region, group president and CEO Thapana Sirivadhanabhakdi said at a press conference on "ThaiBev Vision 2020", yesterday.
...
http://www.nationmultimedia.com/business...46802.html

[greengiraffe]

Looks quite good on face value... need more analysis...

http://infopub.sgx.com/FileOpen/Q3FY2014...eID=324889

[Temperament]

The company FY2013 revenue is Bt160 billion, and the target is Bt700 billion in 2020, more than 4x in 7 years. What a ambitious plan!

Obviously F&N alone isn't enough to fulfill the goal, and more M&A is the pipeline?

(not vested)

Group wants to become a total beverage giant within Asean

Thai Beverage has set aside an investment budget of more than Bt30 billion for 2015-20 to boost total revenue by nearly Bt700 billion in 2020.

This is a part of the group's goal to become a total beverage firm in Asean by 2020. The investment budget does not cover investments for mergers and acquisitions in both domestic and overseas markets, and building brands in the region, group president and CEO Thapana Sirivadhanabhakdi said at a press conference on "ThaiBev Vision 2020", yesterday.
...
http://www.nationmultimedia.com/business...46802.html

Less you forget, a son-in-law who was an ex top influential Banker has been roped in to help running the show. Guess where all the loans come from? Who is the arranger?

[greengiraffe]

The company FY2013 revenue is Bt160 billion, and the target is Bt700 billion in 2020, more than 4x in 7 years. What a ambitious plan!

Obviously F&N alone isn't enough to fulfill the goal, and more M&A is the pipeline?

(not vested)

Group wants to become a total beverage giant within Asean

Thai Beverage has set aside an investment budget of more than Bt30 billion for 2015-20 to boost total revenue by nearly Bt700 billion in 2020.

This is a part of the group's goal to become a total beverage firm in Asean by 2020. The investment budget does not cover investments for mergers and acquisitions in both domestic and overseas markets, and building brands in the region, group president and CEO Thapana Sirivadhanabhakdi said at a press conference on "ThaiBev Vision 2020", yesterday.
...
http://www.nationmultimedia.com/business...46802.html

Less you forget, a son-in-law who was an ex top influential Banker has been roped in to help running the show. Guess where all the loans come from? Who is the arranger?

http://www.valuebuddies.com/thread-4380-...#pid100124

[greengiraffe]

ThaiBev Q3 net profit 9% lower at 3.72b baht
Revenue up as slide in spirits business was offset by other segments

By
Claire Huanghuangjy@sph.com.sg@ClaireHuangBT
15 Nov5:50 AM
Singapore

THAI Beverage Public Company's net profit for the three months to September dipped 9 per cent to 3.72 billion baht (S$147 million) from 4.08 billion baht in the year-ago period.

The lower Q3 net profit attributable to equity-holders came on the back of a weaker spirits

[greengiraffe]

ThaiBev Approaches Vietnam to Buy Stake in Brewer Sabeco

668 words
17 Nov 2014
Vietnam News Summary
VENEWS
English
Copyright 2014. Vian Company Limited.

Thai Beverage PCL., owned by Thailand’s third-richest man, has approached the Vietnamese government to buy a stake in the country’s largest brewer, an indication that foreign interest remains strong in the frontier market despite a series of botched privatisations.

ThaiBev, which owns the Chang Beer and Oishi green tea brands in Thailand, is looking to buy a stake in state-owned Saigon Beer Alcohol Beverage Corp., or Sabeco, which is valued at about $2 billion, people with knowledge of the deal said. ThaiBev is owned by Thai tycoon Charoen Sirivadhanabhakdi, who according to Forbes has a net worth of $11.3 billion at the end of June.

Separately, a Vietnamese government official who didn’t want to be identified said Sabeco, which is under the Ministry of Industry and Trade, will set up a panel to restructure the company and sell up to 53 percent of it to one or several strategic investors. The government currently owns 89 percent of the brewer, which sells brands including 333 and Saigon Beer and controls 46 percent of Vietnam’s beer market as of 2013, according to Euromonitor.

ThaiBev’s interest in Sabeco follows the failure to capture a Myanmar brewer by another of Charoen’s companies, Fraser & Neave Ltd, which lost a legal battle early this month against a conglomerate controlled by Myanmar’s military seeking to wrest full control of the country’s biggest brewer. The acquisition of a stake in Sabeco would open up an alternative emerging market to Charoen, who has been on an aggressive shopping spree in the past few years in the property and consumer sectors. ThaiBev declined to comment

In 2011, Charoen acquired Fraser & Neave for $11 billion, while earlier this year Frasers Centerpoint Ltd – a Singaporean property firm he controls – made a $2.4 billion offer to buy Australand, an Australian residential developer and office landlord. According to Euromonitor, beer sales in Vietnam grew 11 percent in 2013 and are expected to grow 9.6 percent next year. According to Sabeco, the brewer sold 649.8 million litres of beer in the first six months of this year, up 4 percent from a year earlier. Its revenue in the Jan-June period rose 6 percent on an annual basis to 14.3 trillion Vietnamese Dong ($680 million).

This isn’t the first time that Sabeco has been for sale. In the past, the Vietnamese government had planned to sell its stake in the brewer to strategic investors but got delayed due to various procedural issues such as the number of shares the government was willing to sell. But recently, the government has moved to quicken its reforms of state-owned enterprises, public investment and the banking system which are burdened with high levels of nonperforming loans.

Vietnam’s stock market is among Asia’s best performers this year so far, up more than 19.5 percent as investors buy into the small but fast-growing market. government plans to privatise hundreds of state-owned enterprises in a bid to make them profitable have helped drive foreign investment. In recent weeks, however, the mood has become more gloomy as highly-anticipated offerings are made at valuations that local investors say are unreasonable. For instance, state-owned Vietnam Airlines which was aiming to raise $71 million in an initial public offering has been able to raise only $52 million with no participation from foreign investors. The government sold a 3.5 percent stake in the airline when 5 percent was planned initially. The airline chief executive in August said that the firm is speaking to potential strategic investors to sell a separate 20 percent stake in the company.

“Privatising a state-owned company like Vietnam Airlines shows the government’s right direction in restructuring state-owned enterprises to enhance their transparency and efficiency,” deputy minister of Transport Nguyen Hong Truong said after the Friday IPO. (Intellasia – November 17)


Vian Company Limited

Document VENEWS0020141117eabh00023

[greengiraffe]

No Official Confo by Co but for sure mkt now is aware of further expansion and not taking too positively...

ThaiBev Approaches Vietnam to Buy Stake in Brewer Sabeco

668 words
17 Nov 2014
Vietnam News Summary
VENEWS
English
Copyright 2014. Vian Company Limited.

Thai Beverage PCL., owned by Thailand’s third-richest man, has approached the Vietnamese government to buy a stake in the country’s largest brewer, an indication that foreign interest remains strong in the frontier market despite a series of botched privatisations.

ThaiBev, which owns the Chang Beer and Oishi green tea brands in Thailand, is looking to buy a stake in state-owned Saigon Beer Alcohol Beverage Corp., or Sabeco, which is valued at about $2 billion, people with knowledge of the deal said. ThaiBev is owned by Thai tycoon Charoen Sirivadhanabhakdi, who according to Forbes has a net worth of $11.3 billion at the end of June.

Separately, a Vietnamese government official who didn’t want to be identified said Sabeco, which is under the Ministry of Industry and Trade, will set up a panel to restructure the company and sell up to 53 percent of it to one or several strategic investors. The government currently owns 89 percent of the brewer, which sells brands including 333 and Saigon Beer and controls 46 percent of Vietnam’s beer market as of 2013, according to Euromonitor.

ThaiBev’s interest in Sabeco follows the failure to capture a Myanmar brewer by another of Charoen’s companies, Fraser & Neave Ltd, which lost a legal battle early this month against a conglomerate controlled by Myanmar’s military seeking to wrest full control of the country’s biggest brewer. The acquisition of a stake in Sabeco would open up an alternative emerging market to Charoen, who has been on an aggressive shopping spree in the past few years in the property and consumer sectors. ThaiBev declined to comment

In 2011, Charoen acquired Fraser & Neave for $11 billion, while earlier this year Frasers Centerpoint Ltd – a Singaporean property firm he controls – made a $2.4 billion offer to buy Australand, an Australian residential developer and office landlord. According to Euromonitor, beer sales in Vietnam grew 11 percent in 2013 and are expected to grow 9.6 percent next year. According to Sabeco, the brewer sold 649.8 million litres of beer in the first six months of this year, up 4 percent from a year earlier. Its revenue in the Jan-June period rose 6 percent on an annual basis to 14.3 trillion Vietnamese Dong ($680 million).

This isn’t the first time that Sabeco has been for sale. In the past, the Vietnamese government had planned to sell its stake in the brewer to strategic investors but got delayed due to various procedural issues such as the number of shares the government was willing to sell. But recently, the government has moved to quicken its reforms of state-owned enterprises, public investment and the banking system which are burdened with high levels of nonperforming loans.

Vietnam’s stock market is among Asia’s best performers this year so far, up more than 19.5 percent as investors buy into the small but fast-growing market. government plans to privatise hundreds of state-owned enterprises in a bid to make them profitable have helped drive foreign investment. In recent weeks, however, the mood has become more gloomy as highly-anticipated offerings are made at valuations that local investors say are unreasonable. For instance, state-owned Vietnam Airlines which was aiming to raise $71 million in an initial public offering has been able to raise only $52 million with no participation from foreign investors. The government sold a 3.5 percent stake in the airline when 5 percent was planned initially. The airline chief executive in August said that the firm is speaking to potential strategic investors to sell a separate 20 percent stake in the company.

“Privatising a state-owned company like Vietnam Airlines shows the government’s right direction in restructuring state-owned enterprises to enhance their transparency and efficiency,” deputy minister of Transport Nguyen Hong Truong said after the Friday IPO. (Intellasia – November 17)


Vian Company Limited

Document VENEWS0020141117eabh00023

[CityFarmer]

Thai Beverage cut to "underperform", target cut to 61 cents by Standard Chartered

SINGAPORE (Nov 27): Standard Chartered Bank has downgraded Thai Beverage to "underperform" from "outperform" and cut its price target to 61 cents from 74 cents, saying the company's dominance in the spirits market in Thailand is under threat from new entrants.

As a result, the company's return on equity - at an average of 24.2% over the last five years - is likely to fall, according to Standard Chartered analyst Nirgunan Tiruchelvam, who has lowered his 2014 and 2015 earnings estimates by 18% and 13% respectively.
...
http://www.theedgemarkets.com/sg/article...hartered-0

[greengiraffe]

Anheuser-SABmiller deal could spark wave of consolidation

• DOMINIC WALSH
  
• THE TIMES
  

• SEPTEMBER 19, 2015 12:00AM
  

0

[Image: 924236-0992f3d2-5def-11e5-896e-4e71406d3561.jpg]
AB InBev is expected to consider disposals around the world for antitrust and strategic reasons. Picture: AFPSource: AFP
[b]A marriage between the world’s two biggest brewers could spark a fresh round of mergers and acquisitions in the drinks industry as a raft of smaller businesses fall out of the enlarged Anheuser-Busch InBev.[/b]
In addition to the need to resolve the more obvious and significant regulatory issues in the US and China, AB InBev is expected to consider other disposals around the world for antitrust and strategic reasons.
One possible issue identified by analysts is in soft drinks. Although AB InBev has Pepsi bottling operations in Brazil and some other parts of Latin America, SABMiller is a big Coca-Cola bottler, having recently agreed to merge its operations in Africa to create the continent’s biggest producer. SABMillier owns Australia’s Carlton & United Breweries which is behind brands such as VB and Carlton.
Ali Dibadj, of Bernstein, said that although there was a precedent for one company bottling both Coca-Cola and Pepsi, pointing out that SABMiller bottles Coke in Africa and Pepsi in Panama, he thought it “unlikely that the combined entity would be able to bottle both”. He suggested that the creation of “MegaBrew”, as it is being dubbed, would consign to the backburner persistent speculation that AB InBev could try to buy either Coca-Cola or PepsiCo, possibly in combination with 3G Capital, its main shareholder, and Warren Buffett.
Tristan van Strien, of Deutsche Bank, noted that SABMiller’s franchise deals with Coca-Cola, which account for 20 per cent of its total volumes, contained change-of-control clauses, while a takeover could also allow Groupe Castel, SABMiller’s African brewing partner, to negotiate better terms or seek to buy out the business.
The biggest disposals would be in America, where MillerCoors, SABMiller’s joint venture with Molson Coors, has a 28 per cent market share, and in China, where it has 23 per cent through its CR Snow joint venture. In either case, a sale of SABMiller’s interests to the joint venture partner looks the obvious solution, although in the case of America, Heineken, the Dutch brewer, might be interested in some assets.
Under the present agreement, Molson Coors has an automatic right to lift its stake in the venture from 42 per cent to 50 per cent at “fair market value” and the right of first refusal on the rest .
The Times