Brokers' take

Thai Beverage Plc | Buy Fair value: S$1.07 Jan 11 close: S$0.93 OCBC Investment Research, Jan 11

Thai Beverage PLC (ThaiBev) announced last month that it won the bid to acquire 343.6 million shares (or 53.6 per cent stake) in Sabeco, which when translated to an aggregate cost comes up to 156 billion Thai baht (S$6.4 billion).

This acquisition will be done through Vietnam Beverage (VB), a wholly-owned subsidiary of Vietnam F&B, which in turn is ThaiBev's indirect 49 per cent-owned associate. ThaiBev will bear 100 per cent of the acquisition cost through a shareholder loan to VB.