U.S. private-equity firm TPG Capital has agreed to sell its entire stake in Myanmar's largest spirits maker to one of Thailand's richest people in a deal valued at close to $500 million.
TPG said Friday it would sell its 50% stake in Myanmar Distillery Company Group through its investment arm Alliance Asia Investment Pvt. Ltd. to Thai Beverage PCL (Y92.SG), which is owned by billionaire Charoen Sirivadhanabhakdi.
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According to Forbes, Mr. Charoen is Thailand's second-richest person with a net worth of $18.5 billion.
In late 2015, TPG acquired the stake in Yangon-based Myanmar Distillery Co., whose brands include Grand Royal Whisky and Hero Whisky, from international investors for between $100 million and $200 million.
Myanmar Distillery, which has manufacturing plants in Yangon and Mandalay, makes whiskey, rum, gin and wine coolers that are sold through about 1,300 wholesalers and 20,000 retail outlets across the country.
TPG in a statement said the investment by ThaiBev is a "testament" to Myanmar Distillery's extensive platform and strong management team.
In a separate filing to the Singapore stock exchange, ThaiBev said that apart from its deal with TPG, the company has acquired an additional stake in Myanmar Distillery from other parties. Combined, the deals will increase ThaiBev's holding to 75% with a valuation of around $800 million, it said.
The acquisitions will also result in the Thai company having a 75% interest in Myanmar Supply Chain & Service Co., ThaiBev said.
The deals are the latest in a series by the Mr. Charoen's acquisitive businesses, whose investments also include nonalcoholic-beverage makers, real estate and hypermarkets.
Last year, the tycoon through his holding company TCC Assets bought French retailer Groupe Casino SA's Thai hypermarket assets for $3.46 billion.
ThaiBev owns the Chang Beer and Oishi green tea brands in Thailand and has been looking to expand its business in Southeast Asia. ThaiBev is among the companies interested in buying a stake in state-owned Saigon Beer Alcohol Beverage Corp., or Sabeco, Vietnam's largest brewer, people familiar with the matter have previously said.
ThaiBev said Friday it would fund the Myanmar Distillery acquisition through a combination of internal resources and bank borrowings.
Write to P.R. Venkat at email@example.com
(END) Dow Jones Newswires
October 13, 2017 00:02 ET (04:02 GMT)