TPG divests 50% stake in Myanmar Distillery Company to Thai Beverage

Photo by henry fournier on Unsplash

U.S. headquartered private equity major TPG on Friday said that it had exited Myanmar’s largest spirits maker by selling its 50 per cent stake to Thai Beverage Public Company Limited. No financial terms were disclosed. Thai Beverage is among Asia’s leading spirits groups.

The Fort Worth, Texas-based firm had paid between $100 million and $200 million to international investors to buy half of Yangon-based Myanmar Distillery Co (MDC) that is known for brands such as Grand Royal Whisky and Hero Whisky, in November-December 2015.

Founded in 1995, MDC is the largest spirits company in the country, and produces whiskey, rum, gin and wine coolers, which are sold through 1,300 wholesalers and over 20,000 retailers. It currently employs more than 2,500 staff, and has manufacturing facilities in Yangon and Mandalay.

MDC was the private equity firm’s second investment in Myanmar. TPG had earlier invested in Apollo Towers, and since then, the latter had received additional support, including a long-term financing facility from the Overseas Private Investment Corporation. Its other investments in Southeast Asia include 8990, BFI Finance, PropertyGuru, and Vietnam Australia International School.

“When we invested in MDC, we were excited to be partnering with a market leader that had an experienced management team and an extensive, nationwide network. TPG was pleased to have had an opportunity to support them and introduce new initiatives to improve operations and earnings in areas such as lean manufacturing, e-procurement and branding. These initiatives resulted in considerable growth in the business over a short period of time,” Ganen Sarvananthan, Partner at TPG, said in a statement.

This is the second major exit in Myanmar’s spirits market after Singapore’s Fraser and Neave sold its majority 55 per cent stake in Myanmar Brewery Limited for $560 million in 2015. Its stake was bought by Japan’s Kirin Holdings Co.

Also Read: 

TPG Capital snaps up 50% in Myanmar Distillery Company

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.

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.