Reports say Carlsberg is not raising its stake in Habeco

What’s going on at Carlsberg? After years of trying to hike its minority stake in Habeco, Vietnam's third largest brewer is allegedly seeking another investor after Carlsberg dropped its plan at the end of December 2016.

Carlsberg, a shareholder since 2008, was reportedly in talks with the Vietnamese company, which is majority-owned by the state, to increase its stake from 17.23 percent to 30.23 percent, but negotiations fell through. The government, which currently owns an 81.79 percent stake in the Hanoi-based company, announced last year that it would cut that down to less than 50 percent.

Along with Sabeco, the country's biggest brewer, which is also state-controlled, Habeco has caught the interest of foreign investors. However, state-media report that both brewers now seem to have second thoughts.

Interestingly, Sabeco, has recently announced that foreign companies will possibly be excluded from the sale of the government’s stake. This could possible leave Heineken high and dry. The Dutch brewer has held a 5 percent stake in Sabeco since 2008.

Observers are puzzled by the whole procedure and wonder whether the Vietnamese actually know what they want at this point. Whist the talk is all positive about selling down the state’s stakes, the mechanism for the disposals is not known. Will it be to one player? Will it be in one tranche? Will there be a cap of how much each investor can buy? As to not selling the stakes to foreign investors - there are not many Vietnamese around with the financial ability to these stakes without some overseas private equity or strategic backer.