Heineken Bids For Apb In Response To Thaibev

[webfact]

BEER WAR

Heineken bids for APB in response to ThaiBev

KWANCHAI RUNGFAPAISARN

THE NATION

BANGKOK: -- Heineken said yesterday that it was offering US$4.1 billion (Bt130 billion) for a majority stake in the Singapore-based maker of Tiger beer, attempting to neutralise Thai Beverage's competing bid for influence over the brand as the Dutch brewer expands in emerging markets.

Heineken said it had made a proposal to the board of Fraser and Neave Ltd, which shares ownership of Tiger beer maker Asia Pacific Breweries Ltd with Heineken, to pay 50 Singapore dollars (US$40, or Bt1,267) a share for F&N's nearly 40-per-cent stake.

That offer is worth S$5.1 billion (US$4.1 billion). If it were accepted, Heineken would spend a further S$2.4 billion to buy out the minority shareholders in APB.

The Dutch brewer's move comes after ThaiBev, controlled by tycoon Charoen Sirivadhanaphakdi, this week said it had entered agreements with three shareholders to take a 22-per-cent stake in F&N for S$2.8 billion. Amsterdam-based Heineken said in a statement that increasing its stake in APB, which also brews Heineken beer, was consistent with its strategy of growing in emerging markets.

In recent years it has bought brewers in Mexico and Brazil, expanded in India through a partnership with United Breweries, and increased its presence in Africa.

"It is time for us to look ahead to the next chapter of our Asian business," said Heineken chief executive officer Jean-Francois van Boxmeer.

"Both the Heineken and Tiger brands will spearhead our brand portfolio in Asia," he said.

Heineken currently has a 41.9-per-cent stake in APB through a direct 9.5-per-cent shareholding and an indirect shareholding of 32.4 per cent that is held through a joint venture with Fraser and Neave. The Singapore food and beverage conglomerate, which has been in business with Heineken for the past 80 years, owns 39.7 per cent of APB via the joint venture and a 7.3-per-cent direct stake.

Heineken said its offer was a 45-per-cent premium over the average price of APB shares in the past month.

Prin Malakul, marketing director at Thai Asia Pacific Brewery, said yesterday that the possible deal would not have any impact on the Thai operation as its major shareholders are Thai firms, including Thai Life Insurance and ThaiNamthip.

"APB holds only 36 per cent of Thai Asia Pacific Brewery, while major stakes are still in the hands of Thai shareholders. With this, I don't think it will be any significant change in the Thai operations," he said.

F&N and Heineken own about 40 per cent each in Singapore-based Asia Pacific Brewery, and the remaining shares are free-floated in the Singapore stock market.

The purchase of an approximately 20-per-cent stake in F&N by ThaiBev, which would result in 8-per-cent ownership in Asia Pacific Brewery, would not give it major control of the brewery company, compared with the approximately 40-per-cent stake still owned by Heineken.

-- The Nation 2012-07-21

[Sydebolle]

Wondering what our Danish friends from the mountain "Carl" think?

[chuenyongman]

Heineken, As far as I am concerned, is overpriced and over-rated.

[rotary]

I could not agree more. Heineken has over priced their product so while still buy some Heineken, I am weaning myself over to Chang Export pretty fast.

[Geratul]

Funny to read that Heineken has over priced their products. May I place an update about this issue? It's not Heineken, Federbrau, Tiger, Italian food ingredients, peanutbutter from the US etc. etc. but the Thai government who is over pricing every foreign brand! So a bit more homework before reacting I should say

By the way, don't forget the luxury European carbrands as Mercedes or BMW. I always laugh when I see one here driving on the road by knowing those owners are really ripped off with the price. My new 5-serie in Europe is around 1 million baht cheaper then here. Also done by BMW?

Nevertheless.... cheers! I take another one

[johnlandy]

Heineken, As far as I am concerned, is overpriced and over-rated.

'cats piss'

[edwardandtubs]

Funny to read that Heineken has over priced their products. May I place an update about this issue? It's not Heineken, Federbrau, Tiger, Italian food ingredients, peanutbutter from the US etc. etc. but the Thai government who is over pricing every foreign brand!

All those beers are brewed in Thailand and Federbrau isn't even a foreign brand - it's just Chang with a German name.

The reason Chang and Leo are cheaper is because of cheap ingredients and chemicals.

Edited July 21, 2012 by edwardandtubs

[onthemoon]

Is this a discussion of whether Heineken is a good beer, or whether the market forces allow certain brands to command higher prices than others?

The only good posting in this thread is what Carlsberg will say or do about it.

[nikster]

I don't think Heineken taste or whatnot has any relevance to the business that is Heineken. They're buying brands left right and center, they'll have something you like. It's going to be 4 world-wide players: AB InBev, Heineken, SABMiller, and Carlsberg. In terms of competition Thaibev buying Tiger would be a good thing.

I am waiting for the micro-brewery trend to hit Thailand, to be honest. As it is Thailand in 10 years went from a Coffee nowhere-land (Nescafe everywhere, "fresh" coffee rare) to a place where there's several local roasters and a whole gourmet coffee scene in Chiang Mai that rivals that of any western city. And espresso machines all over the country. All it takes is a few determined individuals. Same with beer - there'll be microbreweries here that are good, just a matter of time. Once it hits, it'll move fast.

[onthemoon]

I don't think Heineken taste or whatnot has any relevance to the business that is Heineken. They're buying brands left right and center, they'll have something you like. It's going to be 4 world-wide players: AB InBev, Heineken, SABMiller, and Carlsberg. In terms of competition Thaibev buying Tiger would be a good thing.

I am waiting for the micro-brewery trend to hit Thailand, to be honest. As it is Thailand in 10 years went from a Coffee nowhere-land (Nescafe everywhere, "fresh" coffee rare) to a place where there's several local roasters and a whole gourmet coffee scene in Chiang Mai that rivals that of any western city. And espresso machines all over the country. All it takes is a few determined individuals. Same with beer - there'll be microbreweries here that are good, just a matter of time. Once it hits, it'll move fast.

Yeah, you are right about the beer market currently consolidating. However, real good beers are brewed in small breweries. I think there are 4,000 or 5,000 breweries in Germany, and the best beer is always the local beer (from that town), not one of the big names.

Microbreweries do exist in Thailand. German Tawan Daeng or Hopf come to mind, there likely are others. Excellent beers. Paulaner in Sukhumvit 24 had to close down because the food was not good, not because of the beer.

Coffee is stuff for another topic, because Thai coffee made the traditional style (cafe boran) is actually quite good. And has been here longer than Nescafe.