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Acquisition of stakes in Grand Royal distilleries gives ThaiBev a toehold in Myanmar

PC Lee
PC Lee10/13/2017 12:30 PM GMT+08  • 2 min read
Acquisition of stakes in Grand Royal distilleries gives ThaiBev a toehold in Myanmar
SINGAPORE (Oct 13): DBS is maintaining its “buy” call on Thai Beverage with an unchanged target price of $1.07 as the F&B group appears to be hitting the acquisition trail again with the purchase of a 75% stake in two Myanmar production facilities for
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SINGAPORE (Oct 13): DBS is maintaining its “buy” call on Thai Beverage with an unchanged target price of $1.07 as the F&B group appears to be hitting the acquisition trail again with the purchase of a 75% stake in two Myanmar production facilities for Grand Royal whiskies for US$742 million ($1 billion).


See: Thai Beverage acquires Grand Royal distilleries in Myanmar for $1 bil

Based on ThaiBev’s announcement, the transaction would increase the group’s 9M2017 earnings per share by 1.7% to THB1.20 (4.9 cents) from THB1.18. Based on this, our back-of-envelope calculation suggests that the acquisition was done around mid-thirties PER. The transaction will be funded through internally generated cashflows and bank borrowings. As at June, ThaiBev’s net debt/equity remains healthy at 0.3 times.

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