Thai Bev

Thai Bev: StanChart notes Suntory’s bid last week of US$15.9b for Beam, the world’s 7th largest spirits producer, translates to a deal multiple of 20.5x EV/EBITDA – a 56% premium to the global alcoholic beverage industry average, and a 41% premium to Thai Bev’s FY13e EV/EBITDA. Attaching the M&A valuation multiple to Thai Bev would give the stock a blue-sky SOTP valuation of $0.88, according to StanChart. Meanwhile, using sector average multiples suggest a more conservative SOTP-based valuation of $0.58 for Thai Bev. Thai Bev trades at a 41% discount to the liquor sector average in terms of FY14e P/E. StanChart maintains Outperform with TP $0.72.