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Thai Beverage completes 4 acquisitions in FY Q1

Thai Beverage has completed four major acquisitions between October 1 2017 and December 31, 2017, the first quarter of its 2018 financial year, with aggregate value amounting to approximately Bt200 billion.

The acquisitions comprise a 76 per cent stake in Hotpot and Thai food restaurant operator Spice of Asia Co Ltd to operate 10 restaurants in Thailand; a 75 per cent stake in Myanmar’s largest whisky player, the Grand Royal Group, to operate spirits business in the country; 252 existing KFC restaurants in Thailand; and a 53.6 per cent stake in Vietnam’s largest beer player, Saigon Beer - Alcohol - Beverage Joint Stock Corporation (Sabeco). 
Following the completion of these acquisitions, ThaiBev has begun consolidating their financials into the group’s accounting statements. The acquisitions are in line with ThaiBev’s ‘Vision 2020’ strategic roadmap and bringing it closer to achieve its objective of becoming the largest beverage company in Southeast Asia. 
The assets and liabilities of the four businesses have been consolidated into the group’s 1Q FY2018 financial statements. With the exception of Sabeco, the earnings of the other three businesses during the reporting quarter have also been consolidated into the group’s income and cash flow statements. Sabeco’s earnings during the reporting quarter were not consolidated into these statements as the relevant share transfer only took place towards the very end of 2017.
Moving forward, ThaiBev will begin recognising Sabeco’s earnings from its second quarter onwards.

Published : February 22, 2018

By : The Nation