Buy-up complicates Heineken's brewery bid
Thai Beverage has again lifts its stake in Singapore's Fraser & Neave.
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Thai Beverage has again lifted its stake in Singapore’s Fraser & Neave, complicating Heineken’s attempt to acquire a beer business it runs with the Singapore company.
The Thai company now controls 29% of F&N, having bought 2.6% for about $S316.1 million over the past fortnight.
The latest purchases put Thai Beverage’s stake at one percentage point short of the threshold that would force it to make a general offer for all of F&N under Singapore laws.
F&N shareholders will vote on whether to accept Heineken’s offer to buy out the Singapore group’s stake in DB Breweries owner Asia Pacific Breweries.
APB is an 81-year-old joint venture of Heineken and F&N.
Some analysts believe Thai Beverage is unlikely to bid for all of F&N, given the cost.
Instead, they say companies linked to billionaire Charoen Sirivadhanabhakdi could go after its non-beer assets, such as the food-and-beverage businesses.
Heineken has offered to buy F&N’s stakes in APB for $US6.3 billion.
This would allow the Dutch brewer to boost its presence in Asia’s lucrative beer market amid lacklustre sales in Europe, where recession and government austerity measures have curbed consumer spending.
APB’s Tiger and Bintang beers have nearly 50% of the beer market in Indonesia, Malaysia and Singapore.
The company has 30 breweries, including four in New Zealand, and 40 brands spanning 14 Asian countries, several of which brew Heineken beer for some Asian markets.
NBR Staff
Wed, 05 Sep 2012
Wed, 05 Sep 2012
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Buy-up complicates Heineken's brewery bid
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