In order to draw more attention from foreign investors, the Ho Chi Minh City Stock Exchange will organise roadshows in Singapore and the UK to introduce investment opportunities in Saigon Beer, Alcohol and Beverage Corporation (Sabeco).

Following SCIC's latest successful divestment strategy in Vinamilk, Sabeco will be introduced to foreign investors via roadshows in Singapore and London

Accordingly, a roadshow will be organised at Ritz Carlton Hotel in Singapore on November 24 and another at London Hilton On Park Lane in London on November 27.

Within the framework of the roadshows, a representative of Sabeco will provide general information about the corporation, its manufacturing system, subsidiaries, distribution network, its financial potential (through the financial reports from the past three years), as well as its plans to develop after being equitised.

If investors need more information, they can work directly with representatives of Sabeco at Sabeco’s office from November 29.

To date, the state holds 89.59 per cent stake in Sabeco. Previously, MoIT stated that the divestment may be conducted in December.

However, important information, such as the share volume to be sold, the initial selling price and the number of shares offered to foreign investors, has not been disclosed as the detailed plan is still being built.

A number of institutional investors and companies have expressed interest in buying Sabeco shares following the Vietnamese government’s decision to reduce its ownership in the brewer.

These companies include Australia-based Carlton & United Breweries—a member of Belgian Anheuser-Busch InBev, Thai Beverage, and Heineken.

Organising roadshows aboard to lure investors to Sabeco’s shares is a strategy used by State Capital Investment Corporation (SCIC) in the second divestment round of Vietnam Dairy Products JSC (Vinamilk).

Previously, SCIC organised non-deal roadshows in Hong Kong and Singapore to introduce Vinamilk to investors. This method was effective as Singaporean automotive giant Jardine Cycle & Carriage (JC&C), which had yet to be mentioned on the previous list of interested investors, registered to buy the entire stake on offer. After the purchase, JC&C registered buying an additional 6.7 per cent stake in Vinamilk through open market purchases, increasing its total holding to 10 per cent.

Sabeco is Vietnam’s largest beer producer holding about 40 per cent of the nation’s $6.5-billion beer market. Revenue from beer sales contributed 85 per cent to Sabeco’s total revenue and contributed 95-97 per cent to its profit in 2014-2016.

SGGP