Vietnam: Sabeco to pay a 20% dividend with Vietnam Beverage to receive nearly 54% of the total

With nearly 1,3 billion shares in circulation, Sabeco is expected to spend nearly VND2.600 billion on this interim dividend payment. Of which, with the largest ownership ratio, Vietnam Beverage will receive nearly 54% of the total dividend amount, Vietnam.vn reported on November 4.

According to the announcement of Saigon Beer - Alcohol - Beverage Corporation (Sabeco), the next December 27, 2024 will be the record date for shareholders to receive interim dividends for 2024 at a rate of 20% in cash (1 share receives 2.000 VND). Thus, the trading date is not entitled to December 26, 2024. Dividends will be paid to shareholders on January 23, 2025.

With nearly 1,3 billion shares in circulation, Sabeco plans to spend nearly VND2.600 billion on this interim dividend payment. Currently, Vietnam Beverage Company Limited is Sabeco's parent company, owning more than 687 million shares, equivalent to 53,59% of the company's capital, and is expected to collect nearly VND1.400 billion in dividends. The State Capital Investment Corporation (SCIC), which holds nearly 462 million shares, equivalent to 36% of the capital, will also collect nearly VND940 billion.

At the 2024 Annual General Meeting of Shareholders, Sabeco plans to pay a 2024% cash dividend for 35. In the third quarter of 2024, the company recorded net revenue of VND 7.670 billion, an increase of 3% over the same period in 2023. Profit after tax increased by 8,1%, from VND 1.074 billion to VND 1.161,36 billion.

Sabeco said that in the context of fierce competition from competitors and the continued strict implementation of Decree 100, the increase in product prices and the overall improvement in the economy have contributed significantly to the corporation's business operations. In addition, Sabeco's reduction of a series of costs has also helped reduce the decline in income from interest on deposits and profits from joint ventures and associates. In fact, the profit from Sabeco's group of associates decreased by 34% in the last quarter. Revenue from financial activities also shrank by 34%.

In the first 9 months of 2024, Sabeco recorded revenue of VND 22.939,9 billion, up 4,6% over the same period. Sabeco's after-tax profit reached VND 3.504 billion, up 6,6% over the same period last year and completed 76,5% of the annual profit plan.

Recently, Sabeco announced a public offering to buy shares of Saigon Binh Tay Beer Corporation (Sabibeco - SBB) - the owner of Sagota beer company. Sabeco plans to buy more than 37,8 million SBB shares, equivalent to 43,2% of the total number of voting shares. The offering price is 22.000 VND/share, so Sabeco will need to spend nearly 832 billion VND for this share purchase. The capital will come from Sabeco's equity and other legal capital sources.

Despite the poor business results, Sabibeco's SBB shares have just been released from the trading restriction list, and Sabeco has agreed to offer a purchase price 23% higher than SBB's market price. Sabeco is currently a major shareholder of Sabibeco with a 16,4% ownership ratio. In addition, Binh Tay Wine JSC (a subsidiary of Sabeco) is also holding more than 5,5 million SBB shares, equivalent to 6,3%. If the expected number of shares is purchased, Sabeco will directly own 59,6% of Sabibeco. This beer company will become a subsidiary of Sabeco, increasing the number of existing subsidiaries to 27.

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