Sabeco and Habeco to be listed on 20 December 2016

Looks like Carlsberg could get lucky with Habeco. The northern Vietnamese brewer at the end of October 2016 started trading on the Unlisted Public Company Market. Both Sabeco and Habeco are expected to enter the stock market properly by 20 December. Their trading prices will be used for selling the state’s stakes in those firms.

At the moment Vietnam’s Ministry of Industry and Trade owns nearly 81.8 percent of Habeco’s chartered capital on behalf of the government and Carlsberg owns 17.1 percent. This means the free float is just 1 percent. Nearly 90 percent of Sabeco, the maker of the iconic Saigon beer brand, is owned by the state, while Heineken holds about 5 percent.

For years, Carlsberg has wanted to up its stake in Habeco, which controls 20 percent of the local beer market and is a leader in the north of the country.

Carlsberg is not alone in pursuing Habeco. Foreign investors have long eyed the country’s two state-owned brewers. But Carlsberg has an advantage over its rivals. When Carlsberg became the only strategic shareholder in Habeco in 2009, it reached an agreement to have priority rights to acquire any stake in the local brewer on offer. This even allows the Danish company to intervene in major decisions, including any selection of another strategic shareholder.

The government's plan to divest Habeco has been on and off for several years as it is among the few state-owned companies that perform well.

Independently, Carlsberg is ranked fourth in Vietnam with a 10.8 percent market share, behind Sabeco with 46 percent, Heineken-owned Vietnam Brewery with 25 percent, and Habeco.

According to the Vietnam Beer Alcohol Beverage Association, Vietnamese beer drinkers are expected to consume more than 40 million hl beer this year, up from 38.8 million hl in 2015. Per capita consumption is 27 litres.