Home Capital In print this week

ThaiBev gears up to fund growth, debt level seen as manageable

Jeffrey Tan & Samantha Chiew
Jeffrey Tan & Samantha Chiew4/15/2019 07:30 AM GMT+08  • 10 min read
ThaiBev gears up to fund growth, debt level seen as manageable
SINGAPORE (Apr 15): Thai Beverage has spent the past few years on an $8 billion acquisition spree, as it expanded beyond its home market and into other Southeast Asian markets. It bought a 53.59% stake in Saigon Beer Alcohol Beverage Corp (Sabeco), Viet
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Apr 15): Thai Beverage has spent the past few years on an $8 billion acquisition spree, as it expanded beyond its home market and into other Southeast Asian markets. It bought a 53.59% stake in Saigon Beer Alcohol Beverage Corp (Sabeco), Vietnam’s largest brewery company, and snapped up a 75% stake in the Grand Royal Group, Myanmar’s largest whiskey player. Besides drinks, it is venturing into fast food: It bought the franchise rights to run more than 250 KFC outlets in Thailand.

However, amassing these assets have actually decreased ThaiBev’s net debt to shareholders’ equity to 1.21 times as at Dec 31, 2018 from 1.45 times as at Dec 31, 2017. But this still makes ThaiBev the fifth most heavily geared beverage company in the world.

ThaiBev’s net gearing level is higher than sixth-placed Asahi Group Holdings’ 0.84 times and seventh-placed Heineken’s 0.78 times, but just below fourth-placed Anheuser-Busch InBev’s 1.43 times. AB InBev and Heineken are widely known to be the world’s largest and second-largest brewery companies by volume. Asahi is the seventh-largest brewery company. ThaiBev, in comparison, is not among the world’s 10 largest brewery companies.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now