ThaiBev acquires Myanmar distilleries as TPG exits

Thai Beverage Public Co has acquired a combined 75% stake in two Myanmar distilleries in a deal worth $742 million, hoping to tap into growth in the country’s nascent spirits market.

ThaiBev acquired the 75% stake in Myanmar Supply Chain and Services Go (MSCS) and Myanmar Distillery Co (MDC) from four third-party vendors, including Texas-based private equity firm TPG which sold its 50% stake in MDC, according to their separate announcements.

The deal gives Singapore-listed ThaiBev access to an expanded distribution network in Myanmar, as the food and beverage conglomerate looks to overseas market for growth after a recent sales dip.

ThaiBev sales in the first nine months of its fiscal year, from October 2016 to June 2017, dropped 6% year-on-year to 142 billion baht ($4.3 billion), due to slow economic growth and the observance of a national mourning period.

ThaiBev executives said earlier this month it planned to launch two new spirit products in November and that M&A activities in key markets such as Vietnam, Cambodia and Myanmar were needed.

The two Myanmar companies operate two production facilities in Yangon and Mandalay under the spirits brand Grand Royal, the largest whisky player in the country.

TPG, one of early global investors in the Southeast Asian country after it opened up to foreign investors a few years ago, more than tripled its investment in a sooner-than-expected exit.

TPG’s 50% stake in MDC via an investment vehicle was sold for $494.4 million, according to a person with direct knowledge of the deal. The firm bought the stake for $150 million in Dec 2015, the person said.

ThaiBev acquired a 5% direct stake in the two companies and another 70% indirect stake held by two investment holding companies, in a combined cash deal of $741.6 million.

The transaction was funded with internal cash and bank financing, ThaiBev said.

Source: Bangkok Post

To see the original article click link here

NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, “Puma Energy”, “MOGE”, “yangon new town”,”MECTEL”, “hydropower”, etc.

.

To evaluate the various segments of the market that you could possibly enter base on your competencies you can do a Custom Market Entry Strategy Research. You can see a sample report at page “Actual Sample of Client Report”. Click here to go to page.

.

Do you know that IE Singapore is giving ≤ SGD 20, 000 support under the MRA Grant and > SGD 20,000 under the GCP Grant for Singapore companies to venture into Myanmar? To learn more click here.

.