Thai beverage maker Osotspa takes over glass bottle trader Myanmar Golden Glass
BANGKOK, NNA— Thai consumer goods manufacturer Osotspa Public Co. has taken over a glass bottle products trader in Myanmar as part of its business expansion in Southeast Asia’s emerging economy.
The Thai firm said Wednesday it has acquired newly issued shares equivalent to a 51.84 percent stake in Myanmar Golden Glass Co. (MGG) for $3.3 million and will increase its share to 55.44 percent by Dec. 15, 2020 by pouring in nearly another $1 million.
The transaction is being made via Oventure Pte. Ltd., Osotspa’s wholly owned subsidiary registered in Singapore, it said in a statement.
Last November, Osotspa said it would invest no more than $8 million in total in MGG and Myanmar Golden Eagle Co. (MGE), a glass bottle maker, to enhance its foothold in the neighboring country, the statement said.
In tandem with this strategy, SSB Enterprise Co., also one of Osotspa’s fully owned firms producing beverage concentrates and premixes, had planned to buy a 35 percent stake in MGE for $3.2 million, according to the statement.
Osotspa currently operates five glass bottle plants in Thailand under Siam Glass Industry Co. and Siam Glass Ayutthaya Co., both 100 percent subsidiaries.
In Myanmar, the construction of a new glass bottle factory with local business partners is expected to be completed in 2021, the Thai beverage maker said in a 2019 earnings report released in late March.
Osotspa broke ground for its first beverage production facility in Myanmar in December 2018 with Loi Hein Co., the largest local drinking water and beverage maker, in the Thilawa Special Economic Zone on the outskirts of the commercial capital Yangon as part of its strategy to boost the group’s revenue from overseas markets. The construction of the factory was completed by the end of March.