No state representatives are nominated for Sabeco board next term
As the Vietnamese government aims to fully divest from Saigon Beer Alcohol Beverage (Sabeco), the presence of state representative in the brewer`s board is not necessary in long-term, according to the Central Institute for Economic Management (CIEM)`s expert.
Nguyen Thanh Nam, Sabeco's current chief executive officer and representative of the Vietnamese Ministry of Industry and Trade (MoIT) at the brewer, is not on the list of nominees and candidates for the company's board of directors next term, according to Sabeco's recent proposal ahead of its annual general meeting.
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Pham Duc Trung, head of CIEM's Corporate Development and Reform Department told CafeF that this is a normal practice and a subsequent step of state divestment process.
In the long term, the government intends to fully divest from Sabeco, thus, without state capital, such representative will no longer be necessary, he added.
According to Trung, there will be no disruption in the company's operation, as the board member election process represents the will of its shareholders.
However, with 36% stake in Sabeco, the MoIT has the rights to nominate a maximum of three candidates for the board. Thus, it is likely that a state representative will be included in Sabeco's board for the term 2018 - 2023, Trung continued.
The current list of seven candidates for the board of the next term includes Koh Poh Tiong, Michael Chye Hin Fah, Pramoad Phornprapha, Tran Kim Nga, Nguyen Tien Dung, Luong Thanh Hai and Nguyen Tien Vy.
Sabeco is currently Vietnam's largest domestic brewer with 40% of the market share, followed by Hanoi Beer Alcohol Beverage (Habeco) with 18%.
Last December, the Vietnamese government sold nearly 54% stake in Sabeco to Vietnam Beverage for US$4.89 billion. ThaiBev, controlled by tycoon Charoen Sirivadhanabhakdi, through its local unit Vietnam Beverage, purchased 343.42 million shares at the starting price of US$14.05. The only other bidder, a Vietnamese individual, bought 20,000 shares, or 0.003%, at a price of US$14.07 each.
In 2017, Sabeco alone produced 1.77 billion liters of beer, an increase of 6.6% year-on-year, while Hanoi-based Habeco brewed 657.6 million liters, down 6.5%.
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