Thursday 28 Mar 2024
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SINGAPORE (Dec 20): CIMB Research has downgraded its call on Thai Beverage (ThaiBev) while lowering its target price on the stock by 15 Singapore cents to S$1, after imputing a potential impact to the group’s balance sheet from a recent acquisition which the research house deems pricey.

This follows news of ThaiBev gaining an estimated 26.3% stake in Saigon Beer Alcohol Beverage Corp (Sabeco) via its indirect-owned unit Vietnam Beverage, which won a bid for 53.6% of Sabeco for an aggregate price of VND109.7 trillion (S$6.5 billion).

In a Tuesday report, lead analyst Cezzane See highlights that uncertainties arising from the deal, including the impact on ThaiBev’s balance sheet and returns, may cap near-term investor interest in the stock as it is expected to cause a rise in FY18F net gearing to 1.5 times from 0.2 times previously... (Click here to read the full story.)

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