Kirin in bid to buy F&N’s food and beverage unit
Now that Heineken has its acquisition of Asia Pacific Breweries all sewn up, a bidding war for the rest of Fraser & Neave (F&N) is gathering pace. In November the Singaporean conglomerate received a rival offer from a group led by Overseas Union Enterprise Ltd (OUE), which offered USD 10.7 billion for F&N's property and beverages conglomerate.
The OUE group offered SGD 9.08 (USD 7.44) a share, topping the SGD 8.88 (USD 7.27) offer by Charoen Sirivadhanabhakdi, the owner of ThaiBev and brewer of Chang beer.
OUE has enlisted Kirin, Japan’s largest drinks maker and F&N’s second-largest shareholder, in its bid. OUE, which is a Singapore-based property company, would get the company’s property business while Kirin would take the food and beverage unit.
The Japanese brewer, Asia’s biggest beverage maker, will is prepared to pay SGD 2.7 billion (USD 2.2 billion), for F&N’s food and beverage business, according to OUE’s statement.
Apparently, Kirin's investors are not happy with the bid and fear it might turn out to be expensive shopping without rewards. Kirin's shares fell slightly on the announcement.
As Mr Charoen has failed to win support from F&N’s board for his existing bid, he might reconsider though and submit a higher bid.
Mr Charoen’s unlisted business, TCC Group, has a real estate unit, it was reported. His ThaiBev company gets almost all its revenue from its home market, Thailand.
