ThaiBev acquires Myanmar distilleries as TPG exits

From Reuters - October 12, 2017

HONG KONG, Oct 13 (Reuters) - Thai Beverage Public Co has acquired a combined 75 percent stake in two Myanmar distilleries in a deal worth $742 million, hoping to tap into growth in the countrys nascent spirits market.

ThaiBev acquired the 75 percent stake in Myanmar Supply Chain and Services Go (MSCS) and Myanmar Distillery Co (MDC) from four third-party vendors, including Texas-based private equity firm TPG which sold its 50 percent stake in MDC, according to their separate announcements.

The deal gives Singapore-listed ThaiBev access to an expanded distribution network in Myanmar, as the food and beverage conglomerate looks to overseas market for growth after a recent sales dip.

ThaiBev sales in the first nine months of its fiscal year, from October 2016 to June 2017, dropped 6 percent year-on-year to 142 billion baht ($4.3 billion), due to slow economic growth and the observance of a national mourning period.

ThaiBev executives said earlier this month it planned to launch two new spirit products in November and that M&A activities in key markets such as Vietnam, Cambodia and Myanmar were needed.


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