Vietnam: Carlsberg says talks on Habeco stake increase continue with no new update

The CEO of Carlsberg has said conversations with the Vietnamese government "continue", as the Danish brewer's quest to increase its stake in Vietnam's state-controlled Hanoi Beer Alcohol & Beverage Corp (Habeco) enters another year.

Speaking to analysts following the company's full-year 2018 results, Cees 't Hart said there was "no new update" on the deal. Carlsberg, which owns a 17% stake in Habeco, first confirmed talks with the Vietnamese government in 2016.

"With regards to Habeco, no new update," Hart said on February 6. "We continue our conversations.

It has been said that the Vietnamese government would like to finish the privatisation project by the end of 2020. And Habeco is part of that, that's of course what we take into consideration in our own planning."

As part of its results announcement, Carlsberg also said it will initiate a share buy-back programme of DKK4.5 bln.

In a note that followed the announcement, Bernstein analyst Trevor Stirling said: "We... note that the buy-backs will be in two tranches, giving some flexibility if Carlsberg eventually does land a deal to take control of Habeco in Vietnam."

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