Dutch brewer closes in on DB Breweries' owner
Heineken raises its offer to buy control of Asia Pacific Breweries in a move to fend off a rival bid from Thailand.
Dutch brewer Heineken has made a fresh bid to take full control of DB Breweries owner Asia Pacific Breweries (APB).
Heineken raised its offer to buy the entire stake of its joint-venture partner, Singapore’s Fraser & Neave, in a move to fend off a rival bid from Thailand.
The new offer values F&N at $S5.6 billion ($NZ6.4 billion) and has received a commitment from the F&N board that it won't solicit or accept any other offers for APB, whose flagship brand is Tiger beer.
The offer follows moves by Thai billionaire Charoen Sirivadhanabhakdi to buy a direct 7.3% stake in APB owned by F&N as well as in F&N itself .
F&N and Heineken share a 50-50 joint venture that owns 64.8% of APB, while Heineken has a direct 9.5% shareholding.
Heineken’s latest offer is $S53 a share for the whole of F&N's 39.7% direct and indirect stake in APB.
Once, the deal is approved at the shareholder level, Heineken intends to make a general offer for APB.
Apart from Tiger, APB owns the Indonesian Bintang brand and has nearly 50% of the beer market in Indonesia, Malaysia and Singapore.
Including New Zealand’s DB, APB has 30 breweries and 40 brands spanning 14 Asian countries. It also brews Heineken beer for some markets in the region, including New Zealand.
Even if the F&N deal goes ahead on a simple shareholder majority vote, Heineken will still have to face Mr Charoen's Thai Beverage as a 26.4% shareholder in F&N and Japanese brewer Kirin Holdings, which has a 15% stake.
Heineken expects to complete the deal, including regulatory approvals, by December15 and plans to delist APB after the general offer is accepted.
F&N shares last traded at $S8.40 a share, while APB last traded at $S50.57.
Nevil Gibson
Tue, 21 Aug 2012
Tue, 21 Aug 2012
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Dutch brewer closes in on DB Breweries' owner
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