ThaiBev requests trading halt as unit registers to bid for Sabeco stake

sabeco thai beverage
Sabeco's Saigon beers are display for sale in a market in Hanoi, Vietnam. Reuters

Brewing group Thai Beverage on Monday requested for a trading halt after its confirmed registering a formal bid for Vietnam's biggest brewer Sabeco.

ThaiBev's associated company, Vietnam Beverage, has registered to bid for a 53.59 percent stake in Sabeco, and will price its bid by 3 pm on Monday, it said in a statement on December 17.

Vietnam Beverage's bidding price will only be finalised and notified to the Vietnam Ministry, together with the submission of its bid, on Monday.

The Vietnamese government, which is selling the shares, had earlier provided initial price guidance of 320,000 dong per share, which could make Vietnam Beverage's bid worth about US$4.8 billion.

Thai Bev, controlled by tycoon Charoen Sirivadhanabhakdi, is shaping up as a strong contender, Reuters reported last week, as it is familiar with the Vietnam system and sees Sabeco as key to expanding outside its home market.

Shares in Thai Beverage last traded at S$0.97 on the Singapore Exchange before the trading halt was requested. The stock has gained 15 percent in an year.