ThaiBev acquires China’s coffee company Dongguan LiTeng Foods

Singapore-listed Thai Beverage, or ThaiBev as its popularly known, has acquired Mainland China’s coffee processing and trading company Dongguan LiTeng Foods, for RMB300,000 ($43,570.50), marking its foray into China’s coffee business.

The 100 per cent stake acquisition by ThaiBev has been routed through its indirect subsidiary Asiaeuro International Beverage (Guangdong).

ThaiBev’s presence in China is currently dominated by one distillery producing Yulinquan Chinese spirits. As of September 30, 2018, the company had 173 subsidiaries, including 18 distilleries, 3 breweries and 11 non-alcoholic beverage production facilities in Thailand.

The group has an extensive distribution network covering as many as 400,000 points of sale (POS) across the country. In terms of its international presence, the company already has operations in over 90 countries.

In 2017, ThaiBev picked up a 75 per cent stake in Grand Royal Group (GRG), one of the largest whisky companies in Mynamar. The same year, it acquired a 53.59 per cent stake in Vietnamese-giant Sabeco for Vietnamese Dong (VND) 109.97 trillion ($4.81 billion). Later, in February 2019, the company acquired another 50 per cent stake (34 million shares) in Vietnam F&B Alliance, raising the previous 53.59 per cent stake in Sabeco to 99 per cent.

The total purchase price paid for the additional stake in Sabeco was $14.72 million. Sabeco is a leading beer producer in Vietnam, and is best known for its brands like Saigon Beer and 333 Beer. Sabeco is primarily focus on producing beverages, processing foodstuffs, and trading.

As of six months ending March 31, 2019 (1HFY2019), consolidated total income for ThaiBev stood at Thai Baht (THB)143.57 million ($4.70 million), up 25.17 per cent year-over-year (YoY) from THB114.70 million ($3.75 million) in 1HFY2018.

Total profits for the period ending 1HFY2019 stood at THB14.24 million ($470,000), up 38 per cent YoY from THB10.32 million ($340,000) in 1HFY2018.

ThaiBev’s stock price was last traded at S$0.83, down 0.5 Singapore cents or 0.60 per cent on July 03, 2019 at 1:20 pm Singapore time following the news announcement of the LiTeng Foods acquisition on the previous day.

A total of approximately 9.08 million shares changed hands and the total market capitalisation for the group last stood at S$20.85 billion ($15.83 billion), according to data provided by Yahoo! Finance.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.