ThaiBev hikes F&N stake to critical level
Oh, oh, it does not look good for Heineken and its plans to buy out Fraser & Neave’s stake in Asia Pacific Breweries. On 28 August 2012 Thai Beverage (ThaiBev) said it has raised its stake in Singapore conglomerate Fraser & Neave (F&N) to 29 percent, just below the 30 percent level that would trigger a mandatory offer for the whole company.
ThaiBev, controlled by Thai billionaire Charoen Sirivadhanabhakdi, said it had bought another 2.6 percent stake in F&N for USD 252 million. This brings its interest to 29 percent. If it hits 30 percent, ThaiBev will be obliged to bid for all of the Singapore conglomerate.
ThaiBev is a key shareholder in F&N, along with Japanese brewer Kirin.
A few days previously, the board of F&N had said it plans to distribute USD 3.2 billion to shareholders if an offer by Dutch firm Heineken to buy its stake in Asia Pacific Breweries (APB) is approved. The cash distribution represents 84 percent of the gains after transaction costs, it was reported.
F&N shareholders are due to vote at an extraordinary general meeting (EGM) on whether they are in favour of Heineken’s offer for F&N’s stake in APB, the maker of Tiger Beer.
A date for the EGM has yet to be set.
Heineken already owns 42 percent of APB and is seeking full control of the brewery by buying over long-time partner F&N’s direct and indirect stake of 40 percent.
The Amsterdam-based Dutch beer giant said in August it had signed a definitive agreement with F&N’s board to "irrevocably recommend" the proposed deal to shareholders.
Heineken also said the deal, if approved, was expected to be completed in the fourth quarter of this year, but no later than 15 December 2012.
