ThaiBev only major bidder for Vietnam's biggest brewer

ThaiBev has emerged as the only major bidder for a majority stake in Vietnam's largest brewer, Sabeco, ahead of a highly-anticipated auction for a $4.8 billion stake in the state-owned beer behemoth set to open Monday.

Through its domestic unit Vietnam Beverage, Thai Beverage floated a bid for 343.662 million shares, or a 53.59 percent stake in the company, the Ministry of Industry and Trade said.

An unnamed domestic individual also sought 20,000 shares, it added. They were the only two bidders listed.

Sabeco, the country's largest brewer which produces the much-glugged Saigon Special and 333, announced last month it would sell off a nearly 54 percent stake of the company, but that foreign ownership would be capped at 49 percent. The company is already 10 percent foreign-owned.

ThaiBev's Vietnam Beverage is considered a local company.

Sabeco said in late November it aims to earn at least $4.8 billion from the sale which kicks off Monday afternoon, with share prices set at a minimum of $14.

Analysts said that valuation and timing may have kept more potential bidders away.

"The valuation in relation to the offering price is quite high, it needs strategic investors to justify that kind of valuation," Phap Dang, senior research manager" at Viet Capital Securities Joint Stock Company told AFP.

"The process from the time of the announcement of the stake sale until now is quite short, that might not be enough time for other companies to do (due diligence) on Sabeco. So that might have been a hindrance as well," he added.

Some observers also said the foreign ownership cap of 49 percent might have turned off potential international bidders who sought a majority stake.

The much-delayed sale comes as Vietnam's cash-strapped government is seeking to raise funds by "equitising" hundreds of state-owned enterprises -- its term for privatisation -- including its crown-jewel beer makers.

Though the country has seen solid economic growth of over five percent over the past five years, public debts have soared to close to 65 percent, the maximum allowed by by law.