TRIS Rating places the “AA+” company rating of Thai Beverage PLC (ThaiBev) on CreditAlert, with a “negative” implication. The rating action follows the announcement on 19 December 2017 that the company, together with its subsidiaries, has agreed to purchase 53.59% of all outstanding shares of Saigon Beer-Alcohol-Beverage Joint Stock Corporation (Sabeco) for a total of VND109,956.6 billion (approximately Bt156.0 billion). The acquisition will be funded by loans from several financial institutions, and is expected to be completed by the end of 2017.
Sabeco is the largest beer producer in Vietnam. ThaiBev expects the acquisition of Sabeco will help expand its market presence in the Vietnamese market, broadening its dominance in the beverage market in ASEAN.
The “negative” alert designation reflects the impact of the sizable debt-funded transaction on the company’s financial profile. TRIS Rating will resolve the CreditAlert once more information is provided and thoroughly analyzed.
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