ThaiBev revives beer business share sale plan

Thai Beverage Plc is reviving plans for an initial public offering (IPO) of its beer business to take advantage of a rally in global stock markets, while also weighing the addition of an equity partner, according to company executives.
The IPO of the unit called BeerCo is possible as early as the third quarter of next year if Singapore-listed ThaiBev can decide on the share sale by December, Michael Chye, chief of the beer products group, told reporters in Bangkok on Tuesday.
Separately, chief executive Thapana Sirivadhanabhakdi told Bloomberg the company has “received good interest” from potential partners for the beer unit and is holding talks with two of them.
Although he mentioned that plans were afoot for an IPO of BeerCo, he didn’t say if the company would still bring in a partner in the event of the share sale going ahead.
The latest plan comes two years after ThaiBev, controlled by tycoon Charoen Sirivadhanabhakdi, shelved a proposal to raise as much as $1 billion due to weak market conditions. That has changed now amid a rally in global stock markets coinciding with central banks around the world pivoting to monetary easing.
“Interest rates have started to fall worldwide and the stock markets are coming back strongly,” Mr Chye said. “Therefore, we are looking at the IPO again. We will make a decision soon, maybe in couple of months.”
ThaiBev is also exploring options for its spirits business, including an IPO in Singapore, Bloomberg reported last year. The company held preliminary discussions with banks on options including selling a stake in the maker of the country’s best-selling liquor brands, Mekhong and Ruang Khao.
Prapakon Thongtheppairot, president and head of the spirits business, said the company would prioritise selling shares in the beer unit for now as it would help pave the way for listing of other businesses in the future.
ThaiBev reported a revenue of 217.06 billion baht in the nine months ended June 30, little changed from a year earlier. Earnings before interest, tax, depreciation and amortisation (Ebitda) rose 2.2% to 38.6 billion baht. The beer business posted a 10.2% increase in Ebitda to 11.9 billion baht, according to a company statement.