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Banking & Finance

Habeco to trade on UPCom

Released at: 08:50, 19/10/2016

Habeco to trade on UPCom

Photo: Duc Anh

Beverage corporation given go-ahead by government to list on market.

by Duy Anh

The Hanoi Beer Alcohol and Beverage Corporation (Habeco) has been given permission to trade on the Unlisted Public Company (UpCOM) market under the code HBN, with a total of 231.8 million shares and a registered stock value of more than VND2.318 trillion ($103.9 million).

It will divest the entire 81.79 per cent stake held by the State, worth VND9 trillion ($403.4 million) in 2016, under the government’s plan.

Along with the Saigon Alcohol Beer and Beverages Corporation (Sabeco), the Prime Minister has directed Habeco to list on the stock exchange before State capital is sold, to ensure transparency and the greatest benefit for the State.

After the government pushed for divestment and listing at Habeco and Sabeco, the Ministry of Industry and Trade (MoIT) decided to establish a Steering Committee directing the sale of State capital in the two beverage giants.

The Head of the Steering Committee is Deputy Minister of Industry and Trade Cao Quoc Hung and the ten members of the committee include officials from different MoIT departments and officials from Sabeco and Habeco.

It will be responsible for assisting the Minister of Industry and Trade in carrying out the task set by the Prime Minister, consulting on the sale of State capital.

Both Habeco and Sabeco have been equitized before, with the State still holding 81.79 per cent of Habeco, its employees 0.56 per cent, other shareholders 0.88 per cent, and its strategic investor, Carlsberg, 16 per cent.

The sale of State capital in Sabeco will be carried out in two phases, with the first to divest 53.59 per cent of the State holding, worth VND24 trillion ($108 billion), this year, and the second to sell 36 per cent, or VND16 trillion ($720 million), next year.

During the monthly government meeting in September, Deputy Minister of Industry and Trade Hoang Quoc Vuong revealed that the divestment plans for the two corporations may be delayed to 2017.

However, Minister and Head of the Office of the Government, Mr. Mai Tien Dung, said that MoIT will be held responsible if the divestment and listing process are delayed.

On the over-the-counter (OTC) market, Habeco’s shares are currently receiving much attention from investors and are trading around VND47,000 ($2.10) per share.

On October 19 the Vietnam Securities Depository (VSD) is expected to finalize the list of Habeco’s shareholders to receive cash dividends at a rate of 10 per cent (VND1,000 per share). Habeco is therefore estimated to outlay some VND232 billion ($10.4 million) on the payout.

In 2015 Habeco’s total revenue reached VND9.64 trillion ($432 million) and after-tax profit VND951 billion ($42.6 million). Habeco and Sabeco are Vietnam’s two biggest beverage producers. Sabeco was the largest beer brewer last year, reporting production of 1.38 billion liters. The No. 2 position was taken from Habeco by Heineken.

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