SSI Denies Bid Rumors for Sabeco

Xuan Ha

16:28 14/09/2016


Saigon Securities Inc. has recently denied speculation that it is tendering an offer for Saigon Beer, Alcohol and Beverage’s shares.

SSI Denies Bid Rumors for Sabeco

Sabeco's divestment plan attracts the biggest players in the beverage industry.

Saigon Securities Inc. (SSI)’s Chairman and General Director Nguyen Duy Hung recently denied rumors that SSI is planning to bid for shares of Saigon Beer, Alcohol and Beverage Corp (Sabeco).

Earlier, Sabeco CEO Le Hong Xanh's statement on Bloomberg, several foreign companies are interested to invest in Sabeco, including Heineken, Anheuser-Busch InBev and its merger partner SABMiller Plc., as well as Asahi Group Holdings Ltd., Kirin Holdings Co, Singha Asia Holding Pte. Ltd. and Thai Beverage Pcl. representing Asian competitions.

Mr. Le Hong Xanh also mentioned Saigon Securities Inc (SSI) as the sole domestic investor in the auction.

However, SSI's Chairman and General Director Nguyen Duy Hung said that SSI planned to bid for Sabeco four years ago but the plan didn't go through. Mr. Nguyen Duy Hung is unsure why the company is mentioned on Bloomberg.

Earlier this year, the Prime Minister urged divestment from Sabeco and Hanoi Beer, Alcohol and Beverage JSC (Habeco) has to complete within 16 months.

According to Sabeco’s financial statements for the first half of 2016, its total asset value reached 817.49 million. Sabeco earned $644.79 million in revenue, with a pre-tax profit of $88.83 million.

As of June 30, short-term deposits stood at $369.7 million of 5.5 - 6.2% interest. Long-term deposits amounted to 52.76 million of 6.2 - 7.2% interest. Financial revenue hit $30.39 million in the first six months.

In addition, the company invested $183.5 million in its subsidiaries and joint ventures.

According to Vietnam Beverage Association (VBA), beer production and consumption in Vietnam reached 3.4 billion liters in 2015, a 10% increase from last year and 41% increase from 2010. Sabeco alone accounts for 1.5 billion liters, the rest are from other beer companies.