UOB Kay Hian analyst Lucas Teng estimated that the listed brewery business could be valued at an enterprise value (EV) of 23 times its ebitda. This was assuming that ThaiBev is aiming for a US$10 billion valuation and that it accounts for the segment’s interest-bearing liabilities and minority interest. “This is higher than peers’ average of 15 times. We estimate that Sabeco is currently trading at approximately 20 times EV/Ebitda,” he wrote in a Dec 3 note.
SINGAPORE (Jan 17): Late last year, Thai Beverage (ThaiBev) confirmed news reports that it was exploring a potential listing of its brewery business, albeit at the “early stages”. Subsequently and separately, the company denied news reports that claimed it was seeking a buyer for its business in Vietnam. The company clarified that such claims are “false and without merit”. “[ThaiBev] will make further announcement(s) as appropriate should there be any material developments which warrant disclosure, in accordance with relevant Thai and Singapore regulations,” it said in a Dec 18 filing.
Still, assuming that ThaiBev decides to proceed with the listing, the company is set to benefit. “As a holding company (ThaiBev), they will get better value for their subsidiary [listed brewery business],” Nirgunan Tiruchelvam, head of consumer sector equity research at Tellimer, told The Edge Singapore in Issue 911 (week of Dec 9, 2019) last year. “The spin-off would be a positive note.” He added that the listing could include moving some of ThaiBev’s debt off its balance sheet.
