The resurgence of covid-19 cases in the Southeast Asian kingdom have led Thai brewer ThaiBev to put plans on hold for the second time in 18 months to list their beer business on the Singapore Stock Exchange (SGX).
As recently as January 2021 the Thai beer and liquor giant Thai Beverage Public Company, ThaiBev, had confirmed they would proceed with the listing of their BeerCo Ltd subsidiary. However, as circumstances on the ground in their home market have deteriorated rapidly they have stopped the listing registration for the time being.
On top of measures which already saw the strict controlling of the sale of alcohol in the Thai capitol, the government announced recently that it would impose a two-week closure of bars, clubs and other nightlife establishments.
As of Monday 26th April a longer list of public spaces, services and businesses will also ordered to close for two weeks in Bangkok.
Many of the provinces have also been affected by strict government control measures in an attempt to curb the spread of the virus.
In a public announcement ThaiBev company Secretary Nantika Ninvoraskul announced “In view of the current uncertain market conditions and volatile outlook, aggravated by the worsening COVID-19 pandemic in Thailand and other countries, which are not conducive for the Proposed Spin-off Listing, ThaiBev wishes to announce its decision to defer the Proposed Spin-off Listing for the time being, after having consulted with its financial advisors.”
She did, however, continue that the proposed spin-off listing will be reviewed at the appropriate time.
ThaiBev, producers of Chang Beer and Bia Saigon, had received permission back in February from the Stock Exchange of Singapore to list up to 20% of the spin-off business BeerCo Ltd. Consisting of their regional brewing operations BeerCo Ltd. controls three breweries in Thailand as well as holds an interest in a network of 26 breweries in Vietnam from their 2017 purchase of state brewer SABECO.
The cancellation is a blow to the SGX as the listing was expected to raise in the region of US$2 billion.