Thai Beverage PCL (Y92.SG) and its partner, TCC Assets, on
Thursday said it will make a mandatory general offer to buy Fraser
& Neave Ltd. (F99.SG) valuing the Singapore-based conglomerate
at 12.53 billion Singapore dollars ($10.2 billion), a move that
could upset Heineken NV's (HEIA.AE, HINKY) plans to gain control of
F&N's stake in beer maker Asia Pacific Breweries (A46.SG).
ThaiBev and TCC Assets, both controlled by Thai billionaire and
tycoon Charoen Sirivadhanabhakdi, said they now own a 30.36% stake
in F&N, which in turn has triggered a mandatory general offer
for the whole of the Singaporean company that has businesses in
beer, property, soft drinks and publishing.
In a filing to the Singapore Exchange, ThaiBev said it along
with TCC Assets will offer S$8.88 a share to buy all the F&N
shares it doesn't already own.
Thaibev's latest statement comes as shareholders of F&N are
set to meet Sept. 28 for a crucial vote to approve Heineken's bid
to buy F&N's entire 39.7% stake in Asia Pacific Breweries. Last
month, the board of the Singaporean conglomerate had agreed to
recommend Heineken's sweetened $4.5 billion offer to
shareholders.
"We believe the offer represents an opportunity for F&N
shareholders to realize the value of their investment in cash and
to make a complete exit from F&N," Thapana Sirivadhanabhakdi,
president and chief executive of ThaiBev, said in a statement.
This latest move by the entities of Mr. Charoen will upset
Heineken's plans to consolidate its position in the fast-growing
Asia beer market, as full control of Asia Pacific Breweries would
significantly boost the Dutch company's exposure to high-growth,
developing economies at a time when it is struggling with weakness
in Europe.
F&N and Heineken share an 81-year-old, 50-50 joint venture
that owns 64.8% of Asia Pacific Breweries. F&N also owns a 7.3%
direct stake in Asia Pacific Breweries, while Heineken directly
owns 13.94% of the company after acquiring shares from the market
in recent weeks.
A full control of Asia Pacific Breweries would see Heineken
owning the Tiger and Bintag APB beer brands that have nearly 50% of
the beer market in Indonesia, Malaysia and Singapore, according to
data provider Euromonitor. Asia Pacific Breweries has 30 breweries
and 40 brands spanning 14 Asian countries. It also brews Heineken
beer for some markets in the region.
Heineken needs a simple majority of F&N shareholders to vote
in favor of its offer for Asia Pacific Breweries.
Write to P.R. Venkat at venkat.pr@dowjones.com
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