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.
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).
