Dutch brewer in a bidding war for DB owner
Dutch brewing giant Heineken is aiming to strengthen its control over DB Breweries in a bidding war for the Singapore parent company.
Heineken has made a $S5.1 billion ($5.1 billion) offer for shares in Asia Pacific Breweries (APB), owned by Singapore-based Fraser & Neave (F&N).
The offer of $S50 per share for all of F&N's stake is $S5 more than the offer made by a company linked to another brewer, Thai Beverage (ThaiBev), for an 8.6% APB stake owned by Oversea-Chinese Banking Corporation and its insurance arm Great Eastern Holdings.
The bidding company, Kindest Place, is owned by Chotiphat Bijananda, son-in-law of Thai billionaire Charoen Sirivadhanabhakdi, whose ThaiBev has agreed to buy a 22% stake in F&N for $S2.78 billion.
F&N through its 50%-owned Asia Pacific Investment Private has a 64.8% stake in APB and a direct 7.3% stake. Heineken, which owns the other half of Asia Pacific Investment Private, also has a 9.5% stake in APB.
Heineken says it will also make a general offer for all the APB shares it doesn't own when conditions of its offer are met, in accordance with Singapore's takeover law.
Heineken is offering $5.1 billion for control of Asia Pacific Breweries.
A successful bid will add to Heineken’s recent acquisitions in Mexico, India, Brazil and Africa. ThaiBev operates distilleries in Thailand, Scotland and China, as well as breweries and soft drink facilities in Thailand.
The two stakes ThaiBev is seeking to buy are valued at about $US2.3 billion.