Bao Viet makes $4.26 million on Sabeco divestment

January 06, 2017 | 11:13

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Insurer Bao Viet Holdings announced selling its entire holding in Saigon Beer, Alcohol and Beverage Corporation (Sabeco).

Photo: Duc Thanh

Specifically, on January 3, the company sold 500,000 shares of Vietnam’s biggest brewer at the negotiated price of VND190,000 ($8.5) apiece, earning VND95 billion ($4.26 million) from the sale.

Sabeco’s stocks (HoSE: SAB) started trading on December 6, 2016, with the initial reference price of VND110,000 ($4.93). Within a single month, the price has been rising to close on January 5 at VND197,100 ($8.84), an increase of 79 per cent. The highest price recorded was VND225,000 ($10), recorded on December 16.

Ever since the stock started trading on HoSE, foreign investors have been consistently buying in with little selling. However, foreign holdings currently stand below 1 per cent.

The state currently holds nearly 89.6 per cent of Sabeco’s capital. It plans to divestthe entirety of its share. The divestment plan is projected to be executed in April 2017.

Many foreign investors have expressed interest in buying stakes in Sabeco, including big international beverage makers Kirin, Asahi Group Holdings, Heineken, Singha, ThaiBev, and AB InBev.

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