SABECO's representative (centre) received the recognition for outstanding deal of 2024-25 at Vietnam M&A Forum. Photo courtesy of the firm

HÀ NỘI — Saigon Beer–Alcohol–Beverage Corporation (SABECO) has been recognised in the “Outstanding M&A Deal 2024–25” category at the 17th Việt Nam Mergers & Acquisitions Forum, following the successful acquisition of Saigon Beer – Binh Tay Joint Stock Company (Sabibeco).

The award, announced by an independent appraisal council, cited the transaction as one of the most transformative and value-creating deals in Việt Nam’s beverage industry over the past year.

SABECO purchased nearly 38 million Sabibeco shares, equivalent to a 65 per cent controlling stake, including shares held by related parties. The deal, valued at more than VNĐ830 billion (US$32.6 million), was completed on December 27, 2024.

The acquisition marks a significant milestone in SABECO’s strategy to expand operational scale, optimise production capacity and strengthen its leadership in Việt Nam’s beer market.

A strategic and transformative deal

Prior to the acquisition, Sabibeco operated six breweries with a combined annual capacity of around 600 million litres. However, the company struggled with inefficiencies and posted continuous losses between 2020 and 2024, accumulating losses of more than VNĐ538 billion.

Despite these challenges, SABECO identified Sabibeco as a restructuring opportunity with strong long-term potential.

As early as 2022, SABECO began assessing strategic options, reviewing Sabibeco’s assets and evaluating restructuring prospects. The company said integrating Sabibeco would not only increase total system capacity but also create room for cost reductions, supply chain optimisation and broader market coverage in key regions.

The transaction followed a comprehensive transformation-oriented M&A model, requiring careful planning, complex legal procedures and close coordination among multiple stakeholders.

Negotiations proved particularly complicated as the selling side comprised 276 shareholders, making the public tender offer process lengthy and intricate.

Vietcap Securities Joint Stock Company acted as the principal adviser throughout the 18-month process. From 2022, Vietcap supported SABECO in developing the acquisition strategy, analysing various transaction scenarios, conducting financial and legal due diligence, and designing an optimal deal structure in compliance with regulations.

One of the biggest hurdles was Sabibeco’s status as a public company that had not yet registered for trading on the stock market. Its dispersed shareholder structure and potential legal risks made valuation and execution more challenging.

To address this, Vietcap advised Sabibeco to register its shares for trading on the UPCoM market to ensure pricing transparency and reduce risks for all parties. By late 2023, Sabibeco had completed the listing, creating the legal foundation for SABECO’s public tender offer.

Vietcap later served as the tender agent, directly supporting the share acquisition from all 276 shareholders, helping the deal conclude safely and in compliance with regulations by December 2024.

Strong recovery after restructuring

After gaining control, SABECO quickly launched a comprehensive restructuring programme.

Measures included consolidating production systems, reallocating output to optimise capacity utilisation, standardising governance and operational processes, tightening financial and production cost controls, and streamlining management structures.

The integration increased SABECO’s total production capacity and reinforced its position as the largest beer producer in Việt Nam. At the same time, average production costs declined significantly, laying the groundwork for improved profit margins.

The results have been evident.

Sabibeco, previously a loss-making company, reported a profit of VNĐ108 billion in the first nine months of 2025, a sharp turnaround from a loss of VNĐ76.5 billion during the same period a year earlier.

At the group level, SABECO’s net profit margin rose from 15.3 per cent to 18.1 per cent, reflecting the benefits of expanded scale and leaner cost management.

Industry experts described the deal as one of the most successful restructuring cases in Việt Nam’s beverage sector in recent years, demonstrating SABECO’s capability in executing strategic M&A initiatives.

Organisers of the Vietnam M&A Forum said the transaction clearly illustrated SABECO’s structured planning and implementation capacity, while showing how a loss-making company could be revitalised into an efficient and profitable operation.

“With the successful integration of Sabibeco, SABECO now enjoys larger production capacity, more optimised costs, wider market coverage and a strengthened industry leadership position,” the organisers noted.

The Sabibeco deal is widely regarded as one of the most impactful beer industry transactions in recent years and a model for disciplined, efficiency-driven expansion that creates long-term value.

At the 2025 forum, 14 companies were honoured for outstanding M&A deals, alongside six firms recognised for notable IPOs and private placements, and 14 advisory organisations commended for their contributions.

Among them, SABECO stood out, with the Sabibeco acquisition viewed as a benchmark for sustainable, long-term M&A strategy. VNS