VN Dealbook: Saigon Asset Management buys out US firm; German FDI to reach $5b

Visual from Saigon Asset Management Corporation's website.

In a cross-border deal in Vietnam, Saigon Asset Management Corporation buys out US-based Heritage Beverage Company, exclusive importer of Saigon beer products to the North American market. Meanwhile, Germany has committed to bring its direct investment into Vietnam to $5 billion within the next five years.

Saigon Asset to take over US co Heritage Beverage

Ho Chi Minh City-based Saigon Asset Management Corporation will acquire all the outstanding shares of American Heritage Beverage Company in an all-cash transaction.

“The acquisition is the next step in development of Saigon Asset Management’s private equity activities by targeting high growth companies with competitive advantages between the US and Vietnam,” the Vietnamese asset management firm said, in a statement.

The future transaction will allow Saigon Asset Management to invest in selling Saigon Beer – Alcohol and Beverage JSC (Sabeco) products in North America, as Heritage Beverage is the exclusive US and Canada distributor of the largest Vietnamese brewer’s Saigon beer brand.

The acquisition will also enable Saigon Asset Management to secure long-term access to North America’s distribution and retail channels at lower cost.

“The proposed acquisition will be ideally positioned to capture the growth opportunities created by the rapidly evolving import beer industry in the US and Canada,” said Louis Nguyen, chairman and CEO of the Vietnamese partner, who will join Heritage Beverage as the new president.

Saigon Asset Management is well-known locally for its fund management and M&A activities with a number of investments over the last several years by its Vietnam Equity Holding and Vietnam Property Holding funds, which have deployed over $250 million in over 45 companies and projects in the country.

Eli Holsinger, CEO of Heritage Beverage, said: “Saigon Asset Management and Sabeco have been working together since 2005 in various projects and capacities. This combination creates an even stronger partner for our customers. Joining forces with Saigon Asset Management will enable Heritage Beverage to broadly offer the best Vietnamese beers to the world’s largest beer drinking region.”

Also read:

Saigon Asset Management backed firm inks deal for Myanmar offshore block

Vietnam Property Holding exits Century 21 over delisting dispute

HK’s Mirae Asset to buy out partners’ stake in Vietnamese securities company

FDI from Germany to hit $5 billion

Foreign direct investment (FDI) from Germany into Vietnam is expected to hit $5 billion within the next five years, up by over 3.5 times compared to last year, seen as a result of the recent meeting between German chancellor Angela Merkel and Truong Tan Sang, the president of Vietnam.

German FDI inflow to Vietnam has remained modest, reaching $1.41 billion in 2014 and ranking the fifth position among countries from the European Union. According to the Ministry of Planning and Investment, German companies had 274 projects with a total pledged capital of $1.48 billion as of October 2015. Dominant players are engineering and electronics companies Bosch and Siemen, automakers Audi AG and DaimlerChrysler, and consumer product firm Braun GmbH.

Merkel and Sang have agreed to boost mutual investment in the two countries’ manufacturing, electrical engineering, infrastructure, renewable energy, agriculture and consumer goods sectors.

In addition, bilateral trade is also anticipated to increase by 156 per cent over the next five years to touch $20 billion.

Also read: Vietnam records 8.4% rise in FDI inflows at $9.6b

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.