Thai Beverage raises stake in F&N to 26.2%
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The intense battle for the interests behind Tiger beer maker Asia Pacific Breweries (APB) has taken another twist.
Thai Beverage has raised its deemed interest in Fraser & Neave (F&N), taking it one step closer to a mandatory takeover offer for the conglomerate, part owner of APB.
F&N told the Singapore Exchange yesterday that ThaiBev had boosted its stake in F&N from 24.1 per cent to 26.2 per cent.
ThaiBev subsidiary, International Beverage Holdings, snapped up about 29.5 million shares in F&N last Wednesday, bringing ThaiBev's deemed interest in F&N up to nearly 372.7 million shares.
The move brings ThaiBev nearer to the 30 per cent threshold that would trigger a mandatory takeover offer for F&N.
ThaiBev had previously raised its stake to 24.1 per cent in the company through open market purchases, after buying a 22 per cent stake in F&N from OCBC Bank, Great Eastern and Lee Rubber Company last month.
Singapore-listed F&N has been involved in a tussle over who controls its associate APB. Some observers suspect ThaiBev may vote against the sale of APB.
Because the OCBC stable had wanted to sell its F&N and APB stakes collectively, Kindest Place Groups, run by the son-in-law of ThaiBev founder Charoen Sirivadhanabhakdi, bought 8.6 per cent of APB for S$45 (US$36) a share, or more than S$990 million.
This purchase sparked an offer for APB from Dutch brewer Heineken. On August 3, F&N agreed to sell its entire 39.7 per cent interest in APB for S$50 a share, or S$5.1 billion, to Heineken.
If F&N's shareholders accept Heineken's bid for APB, Heineken will go on to make a mandatory general offer for the rest of the brewer for a further S$2.4 billion.
But Kindest made an unsolicited bid of S$55 per share for F&N's direct 7.3 per cent stake in APB on August 7, countering Heineken's offer. This, if accepted, would raise its stake in APB to just under 16 per cent.
F&N has to respond to Kindest's offer by Thursday.
