Thai beverage billionaire revives plan to list regional beer unit in Singapore

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Thai Beverage, controlled by Thai billionaire Charoen Sirivadhanabhakdi, has relaunched plans to list its regional beer business on the Singapore Stock Exchange, a move bolstering the growth potential of its brewing unit and the group.

“The Board of Directors sees significant growth potential in the beer business and believes that this potential can be better developed with a board and management team dedicated solely to the growth of the beer business,” Thai Beverage said Thursday in a regulatory filing at Singapore Stock. To exchange.

Under the plan, Thai Beverage will spin the brewing business – comprising breweries in Thailand and Vietnam and beer brands such as Chang, Archa and Bia Saigon – into a separate company. The Singapore-listed food and beverage giant will sell around 20% of the brewing company through an initial public offering.

Thai Beverage had previously planned to raise about $2 billion from the beer business’ IPO last year, but the company canceled it due to the Covid-19 pandemic, according to Reuters. The beer business generated a net profit of S$342 million ($248 million) on revenue of S$4.2 billion in the financial year ending September 2021, it said.

The spin-off will allow the brewing company to fund its own expansion plans and help financially strengthen parent company Thai Beverage, allowing the group to better utilize its financial resources to expand its other businesses, including soft drinks, beverages, and beverages. packaging business as well as the Oishi restaurant chain, Thai Beverage said. It will also boost the value of Thai Beverage, whose shares jumped more than 4% to S$0.70 in afternoon trading in Singapore.

“The proposed list of spin-offs will provide a transparent valuation benchmark for the spin-off businesses of the brewing group of companies and allow for more distinctly valuing and evaluating the core businesses of the Thai Beverage Group,” Thai Beverage said. “Thai Beverage believes that the brewing group’s position as one of Southeast Asia’s leading beer players and its growth potential provides a distinct and compelling growth story.

Besides Thai Beverage, Charoen is also the majority shareholder of Frasers Property in Singapore, Thai hypermarket chain Big C Supercenter and hotel operator Asset World. He was ranked No. 3 on the list of Thailand’s 50 richest people released in July last year, with a net worth of $12.7 billion.

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