Case study: The acquisition of Saigon Beer-Alcohol-Beverage Corporation By Thai Beverage Public Company Limited

Abstract

Business environment has been changed day by day so that it requires enterprises move faster and react quicker to its changes. And mergers and acquisitions (M&A) can be a powerful tool that significantly allows companies reach their goals and strategies. Applying a case study methodology, this thesis will analyze the acquisition of Saigon Beer-Alcohol-Beverage Corporation by Thai Beverage Public Company Limited. This transaction announced on December 18th, 2017 with an estimated total consideration of roughly $4.85 billion. The Thai Beverage (THAIBEV) affiliate Saigon-Beer-Alcohol Beverage (SABECO) acquired 343,6 million stock shares, equal to a 53.6% stake, at price approximately $14.5 per SABECO share. This deal has been considered not only one of the largest M&A deals in Vietnam in history, but also one of the largest M&A deal ever of the Asian beer industry. This study would like to highlight on the following topics: (1) analyze the acquisition’s key aspects; (2) evaluate the acquisition; (3) comparison of beer companies’ valuation in other countries and comparison with other food companies’ valuations in Vietnam; (4) the acquisition’s market reaction and about THAIBEV’s and SABECO’s future changes.