A $1.1 billion strategic deal was signed between Singha Asia Holdings Pte. Ltd. and Vietnam's Masan Group to buy stakes in two of the consumer goods firm's unlisted units, the companies said.
In a deal that aims to help Singha expand in Vietnam and give Masan a foothold in Thailand, Singapore-based Singha Holdings would buy 25 percent of Masan Consumer Holdings and 33.3 percent of Masan Brewery.
Government data shows that Vietnam is the third-largest beer consumer in Asia behind Japan and China. In 2013, the country consumed more than 3 billion litres which was much more than the more wealthy Southeast Asian peers like Thailand.
"Masan's extensive distribution platform touching every corner of Vietnam will help Singha reach a market of 90 million people that is expanding quickly," Chief Executive Palit Bhirombhakdi of Singha Asia Holdings said in a statement.
The family of Santi Bhirombhakdi, Thailand's seventh richest man according to Forbes Magazine controls Thailand's Boon Rawd Brewery. Singha Asia Holdings is a unit of Thailand's Boon Rawd Brewery.
With business interests in property, retail, fashion, food and consumer goods, the Bhirombhakdi family is the latest among Thailand's wealthy elite to make inroads into the Vietnam. Vietnam has been posting strong economic growth and has a middle class expanding at one of Asia's fastest rates.
Masan Group is one of Vietnam's biggest listed firms and has businesses in consumer goods through Masan Consumer Holdings, which owns 66.7 percent of newly established Masan Brewery, and mining firm Masan Resources.
"The list of products and operating platform of Singha could help promote the growth of Masan in both Vietnam and other markets in the region," said Seokhee Won, deputy chief executive officer of Masan Group.
The statement by the two companies said that the deal is expected to be concluded in January 2016.
The news of the deal resulted in a 6.38 percent rise in the prices of the shares of the company to close above a three-month high at 70,500 dong ($3.13), Reuters data showed.
(Source:www.cnbc.com)
In a deal that aims to help Singha expand in Vietnam and give Masan a foothold in Thailand, Singapore-based Singha Holdings would buy 25 percent of Masan Consumer Holdings and 33.3 percent of Masan Brewery.
Government data shows that Vietnam is the third-largest beer consumer in Asia behind Japan and China. In 2013, the country consumed more than 3 billion litres which was much more than the more wealthy Southeast Asian peers like Thailand.
"Masan's extensive distribution platform touching every corner of Vietnam will help Singha reach a market of 90 million people that is expanding quickly," Chief Executive Palit Bhirombhakdi of Singha Asia Holdings said in a statement.
The family of Santi Bhirombhakdi, Thailand's seventh richest man according to Forbes Magazine controls Thailand's Boon Rawd Brewery. Singha Asia Holdings is a unit of Thailand's Boon Rawd Brewery.
With business interests in property, retail, fashion, food and consumer goods, the Bhirombhakdi family is the latest among Thailand's wealthy elite to make inroads into the Vietnam. Vietnam has been posting strong economic growth and has a middle class expanding at one of Asia's fastest rates.
Masan Group is one of Vietnam's biggest listed firms and has businesses in consumer goods through Masan Consumer Holdings, which owns 66.7 percent of newly established Masan Brewery, and mining firm Masan Resources.
"The list of products and operating platform of Singha could help promote the growth of Masan in both Vietnam and other markets in the region," said Seokhee Won, deputy chief executive officer of Masan Group.
The statement by the two companies said that the deal is expected to be concluded in January 2016.
The news of the deal resulted in a 6.38 percent rise in the prices of the shares of the company to close above a three-month high at 70,500 dong ($3.13), Reuters data showed.
(Source:www.cnbc.com)
