ThaiBev, which is listed in Singapore, said it raised the money through internally generated cash flows and external borrowings. 

It acquired the stake from four third-party vendors, including Texas-based private equity firm TPG which sold its 50 percent stake in MDC, according to their separate announcements. TPG sold its stake to ThaiBev for $494.4 million, a source told Reuters. The firm bought the stake for $150 million in December 2015.

MDC is Myanmar’s largest spirits company and the producer of Grand Royal, the country’s leading whisky brand. It also makes a range of other whiskies and gin at its two distilling, blending and bottling facilities in Yangon and Mandalay.

The move gives ThaiBev access to Myanmar’s coveted spirits market and represents a significant move forward for the Thai spirits maker, which is working towards its vision of becoming the biggest beverage company in Southeast Asia by 2020.

ThaiBev is the main spirits maker in Thailand, controlling more than 90pc of the market. Earlier this month, it said it plans to launch two new spirit products in November and that mergers and acquisitions in key markets such as Vietnam, Cambodia and Myanmar were needed.

The Thai company, which is run by Thapana Srivadhanabhakdi, son of property and F&B tycoon Charoen Srivadhanabhakdi, also brews the popular Chang beer. In 2013, it acquired Singapore’s beverage maker Fraser & Neave for $11.2 billion. F&N makes soft drinks, ready-to-drink teas and soya milk as well as the 100 Plus isotonic energy drink, which is distributed in Myanmar.

F&N used to co-own a stake in Asia Pacific Breweries (APB) together with Dutch brewer Heineken, which bought F&N’s stake in the brewer in 2012 for $4.5 billion. APB brews the popular Tiger beer and ABC Stout, which is sold in Myanmar. On October 14, Heineken, which runs a brewery outside Yangon, launched Tiger Crystal, a lighter version of Tiger, in Myanmar.

In 2015, Japanese beverage maker Kirin Holdings also bought F&N’s stake in state-backed Myanmar Brewery, which makes Myanmar Beer, Myanmar Double Strong and Andaman Gold brands, for $560 million.

ThaiBev sales in the first nine months of its financial year, from October 2016 to June 2017, dropped 6pc year-on-year to 142 billion baht due to slow economic growth and the observance of a national mourning period.

Its shares closed at 94 Singapore cents on October 13.

Source: https://www.mmtimes.com/news/thai-bev-buys-myanmar-distilleries.html