--Unsolicited offer is for company's hospitality and
serviced-residence assets
--Singapore law forbids F&N from selling significant asset
during takeover bid
--F&N already target of $7.2 billion takeover bid by Thai
tycoon Charoen Sirivadhanabhakdi
SINGAPORE--Fraser & Neave Ltd. (F99.SG), the Singapore
conglomerate targeted in a takeover bid by a Thai billionaire, said
Wednesday that it has declined a 1.4 billion Singapore dollar offer
($1.1 billion) from an unnamed third party to buy its hospitality
and serviced-residence businesses.
F&N, which owns property, food and beverage, and publishing
assets, won't respond to the unsolicited offer as it sees those
assets as integral to its real-estate arm, the conglomerate said in
a statement. Also, under Singapore law, the target of a takeover
can't sell any significant asset during the bid.
F&N, fresh from agreeing last month to sell its prized beer
joint venture to partner Heineken NV (HEIA.AE), is already mulling
a $7.2 billion offer from Thai tycoon Charoen Sirivadhanabhakdi to
buy the part of the Singapore group that he doesn't already
own.
These bids have stoked market speculation in recent months that
F&N could be broken up by business rivals swooping into to buy
the conglomerate's various assets piecemeal. Among them, Japanese
beverage giant Kirin Holdings Co. (2503.TO)--F&N's
second-largest shareholder with nearly 15%--has expressed interest
in its food and beverage assets.
Mr. Charoen made his move for F&N last month using an
unlisted special purpose vehicle, TCC Assets Ltd. His offer values
the Singapore firm at S$12.53 billion. As of Tuesday, the Thai
tycoon owns 33.17% of F&N through Singapore-listed Thai
Beverage PCL (Y92.SG) and TCC Assets.
Mr. Charoen's initial focus was on F&N's beer assets, but
now he is eyeing the company's property portfolio and a regional
distribution network driven by its soft-drinks business, according
to people familiar with the Thai tycoon. Mr. Charoen's TCC Group
has business interests spanning beverages, property and consumer
products, among others.
F&N's financial advisers are expected to issue their advice
on Mr. Charoen's offer by Thursday.
Write to Chun Han Wong at chunhan.wong@dowjones.com
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