Major drink producer Tan Hiep Phat seeks foreign investors
According to the Wall Street Journal, Tan Hiep Phat Beverage Group, one of the largest drink firms in Vietnam, is seeking foreign investors, through selling a minority stake. According to a close source, if the deal is completed, Tan Hiep Phat can be valued up to $2 billion.
A soft drink production line of Tan Hiep Phat.
According to this source, the company is calling for foreign investment to expand business. It has hired a foreign bank as advisor for the deal.
Tan Hiep Phat was founded by Tran Quy Thanh in 1994 in the southern province of Binh Duong. It is currently one of the largest private consumption goods production firms in Vietnam, specializing in beverages, soft drinks.
Tan Hiep Phat’s products are exported to six countries, including Australia, Canada and China, with more than 4,000 employees. In Vietnam it has four factories.
Joining the market in 2006, Tan Hiep Phat grew very fast. In 2013 its market share in the soft drink market accounted for 22.65%, while PepsiCo held 25.5% and Coca-Cola Vietnam 10.5%, according to VietinbankSC.
According to a close source, the plan to sell shares to foreign investors has not been confirmed yet. The company’s boss Tran Quy Thanh did not comment on the information.
Thanh’s family currently owns 100% stake in Tan Hiep Phat. The company's largest shareholder is Pham Thi Nu, Thanh’s wife, with 54.4% of charter capital. The rest belongs to Tran Uyen Phuong and Tran Ngoc Bich, Thanh’s daughters.
Experts said that if this affair is successful, it will further promote the wave of M&A in Vietnam. There will be more foreign investors to hold shares in Vietnamese consumption goods companies.
Late last year, Thailand’s Singha beer corporation invested $1.1 billion to acquire two subsidiaries of Vietnamese group Masan, one of the largest consumer goods firms in Vietnam.
The French group Casino SA is offering for sale its Big C retailing chain in Vietnam, attracting the attention of some investors in Thailand and Japan.