ThaiBev Beer Brewery Pre-IPO/Spin-Off - Early Take - Aiming to build an ASEAN champion?
Thai Beverage (THBEV SP) announced in November 2019 that it is potentially looking to spin-off its beer brewery operations, which mainly consisted of its Thailand and Vietnam beer assets. The unit will be looking to list on SGX and will potentially raise over US$2bn, valuing it at about US$10bn, according to news reports.There is probably still a long way to go between now till the spin-off. While nothing is set in stone yet, the listing will likely encompass THBEV’s Thailand brewery operations, which include Chang Beer, Archar and Federbräu, and its majority-owned and listed Vietnam subsidiary, SABECO, which sells Saigon and 33 Beer.
While the Thailand and Vietnam operations both have significant market share in their respective markets, growth has been muted while margins have been under pressure. This seems to stem from increased competition and also industry headwinds (specifically in Thailand).
The amalgamation of the two into one unit looks good on surface with revenue increasing due to consolidation of SABECO but THBEV Brewery will need to demonstrate that there is synergy to be realized from the acquisition by the time it comes to market for an IPO.
Thai Beverage Public Company is engaged in the production and distribution of alcoholic and non-alcoholic beverages, as well as the operation of Japanese restaurants. Co.'s business consists of four segments: spirits, beer, non-alcohol beverages and food. The spirits segment is engaged in the production and sales of branded spirits products. The beer segment is engaged in the production and sales of branded beer products. The non-alcoholic beverages segment involves the production and sales of branded water, soda, ready-to-drink coffee, energy drink, green tea and fruit juice flavour. The food segment includes Japanese restaurants, bakery shops and distribution of food and beverage.
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
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