Thai-Dutch Battle Erupts Over Singapore'S Tiger Beer

[george]

Thai-Dutch battle erupts over Singapore's Tiger Beer

Thai rival fights Heineken takeover of Singapore brewer

by Martin Abbugao

Singapore, Aug 7, 2012 (AFP) - A Thai company Tuesday raised the stakes in a battle for control of a Singapore brewer about to be taken over by Dutch giant Heineken by offering a higher price for the makers of Tiger Beer.

Kindest Place, a firm owned by a son-in-law of Thai drinks tycoon Charoen Sirivadhanabhakdi, offered Sg$55 ($44.34) for the 7.3 percent stake in Asia Pacific Breweries (APB) held directly by Singapore conglomerate Fraser and Neave (F&N).

This was 10 percent higher than the Sg$50 per share offered by Heineken for the 40 percent stake held directly and indirectly by F&N, a deal valued at Sg$5.1 billion ($4.1 billion).

If successful, Kindest Place's Sg$1.03 billion offer would raise its APB stake to nearly 16 percent versus Heineken's current 42 percent equity.

F&N's board had recommended acceptance of Heineken's offer before the Thai proposal was announced.

Charoen's Thai Beverage owns around 24 percent of F&N. The other major stockholder of F&N is Japan's Kirin Holdings, which holds 15 percent but has flatly ruled out a bid for the Singapore brewer.

APB reported revenues of Sg$773.42 million in its second quarter ending March 31, up 15 percent from a year ago, with most sales generated in Southeast Asia.

Analysts said the Thai offer, valid until August 16, has put pressure on Heineken to sweeten its proposal.

But company spokesman John-Paul Schuirink said the Dutch firm was already offering "superior value for all shareholders," not just 7.3 percent of APB stock.

"We take note of this new offering," he told AFP, refusing to comment further.

Analysts had predicted that the Thai faction would make a counter-offer for APB before an extraordinary general meeting is called by F&N to consider Heineken's proposal. No date has been announced for the meeting.

The Thai offer represented a 12.6 percent premium over APB's closing share price of Sg$48.84 on Tuesday.

The Asia-Pacific region accounts for more than a third of global beer consumption and industry analysts expect demand to grow further as sales taper off in mature markets like North America and Europe.

Whoever buys APB would control 30 breweries in 14 countries: Singapore, Cambodia, China, Indonesia, Laos, Malaysia, Mongolia, New Caledonia, New Zealand, Papua New Guinea, Solomon Islands, Sri Lanka, Thailand and Vietnam.

F&N, which also has interests in non-alcoholic drinks, property and publishing, said the Thai offer lapses at the close of business on August 16.

"It will start a bidding war where the board of F&N will now have to go to the shareholders with the fact that they've had a higher offer," Justin Harper, a market strategist with IG Markets Singapore, said of the Thai move.

F&N shares closed at Sg$8.28 on Tuesday, up 0.73 percent from the day before, while APB fell 0.02 percent to Sg$48.84.

Heineken shares were trading lower on the NYSE Euronext Amsterdam exchange after Kindest Place's counter-offer.

"Now all the pressure will be on Heineken, who thought they'd won the day, to see if they can better the offer," Harper said.

"I think it could be a drawn-out battle."

Figures from global business consultancy Euromonitor showed that the Asia-Pacific region is the world's biggest beer market with 35.3 percent of the total volume consumed globally last year, up from 34.4 percent in 2010.

Total beer consumption in the region was estimated at 67 million litres in 2011, set to rise to nearly 85 million litres by 2016, thanks to the region's rapidly growing middle classes.

APB's flagship product Tiger Beer is popular across Southeast Asia and is positioned as an exotic premium brand in Europe.

The brewer also makes Bintang, the de facto national beer of economically booming Indonesia, Southeast Asia's largest economy.

Heineken's offer for APB came days after Thai Beverage began building up its stake in F&N, triggering rumours of a bid for APB.

-- (c) Copyright AFP 2012-08-07

[moe666]

crap beer keep it.

[kimamey]

crap beer keep it.

Well I struggled to get a grasp of the financial intricacies of the post but thank goodness for your concise balanced and authoritative summing up of this complex story.

[MZurf]

crap beer keep it.

Well I struggled to get a grasp of the financial intricacies of the post but thank goodness for your concise balanced and authoritative summing up of this complex story.

[londoedan]

crap beer keep it.

I can see why they're fighting over it - I prefer it to most of the local Thai and imported brands as it has a bit more flavour. Can't stand Tiger-lite though, not a patch on SML.

If Heinken win the 'drawn-out battle' then I hope they won't dick out about with Tiger - one soapy tasting beer in SE Asia is enough thanks.

[LennyW]

As soon as i read heineken i lost interest!

[Jaivin2011]

Whatever it costs, don't let the thais get hold of it.

[Katipo]

Kindest Place... "The measure of a mans thirst".... ummm, no.

[soundman]

Whatever it costs, don't let the thais get hold of it.

Why, pray tell, would that be?

[Exsexyman]

Whatever it costs, don't let the thais get hold of it.

Why, pray tell, would that be?

I will hazard a guess. He has scoured the forum searching for any topic, however irrelevant, to make a derogatory remark about Thailand. It's a pathological obsession with some on here! Beats me why they stay here, must have masochistic tendencies!

[KireB]

I will hazard a guess. He has scoured the forum searching for any topic, however irrelevant, to make a derogatory remark about Thailand. It's a pathological obsession with some on here! Beats me why they stay here, must have masochistic tendencies!

The more you love a country the more you complain about it! If you wouldn't give rat's behind about this place, you wouldn't complain. Simple.

Nothing beats a good hangover on Thai beer, does it? Wonder which chemicals they add to the likes of Cheers, Chang, Leo.

[SuneeTH]

Dutch auction?

[jaltsc]

I'm not sure it really matters. It seems to me that whenever a beer hits Thailand the product's taste and quality is a lot less than what one can find under the same label in other parts of the world. I have sampled Heineken, Tiger, San Miguel in other countries and they were all quality beers. The stuff in the same labeled bottle in Thailand would result in a laboratory concluding that "Your horse has diabetes". The only common factor is that they all contain alcohol.

[webfact]

BEER WAR

Charoen in fight against Heineken

The Nation

BANGKOK: -- Thailand's liquor tycoon Charoen Sirivadhanabhakdi's business unit, Kindest Place Groups, has submitted an unsolicited bid for a stake in Asia Pacific Breweries (APB), apparently to ward off Heineken.

According to a statement released in the evening of Aug 7, Fraser and Neave (F&N) received the bid for 18.8 million shares it owns in APB, or 7.3 per cent. Kindest Place Groups, owned by Charoen’s son-in-law Chotiphat Bijananda, offered the $55 Singapore dollar price for the shares, 10 per cent higher than Heineken’s $50 offer.

F&N's board of directors last week recommended Heineken NV's offer of S$50 a share for its 40 percent stake in APB to shareholders. Heineken said in a statement earlier that the $50 price offers a 10-per cent premium.

"This is all about forcing Heineken to increase its offer," Jonathan Foster, Singapore-based director of Global Special Situations at Religare, told Bloomberg. "It's a very aggressive strategy. I can't see how this will go wrong for them. It was quite a clever ploy from the family."

Kindest Place Groups has already owned an 8.6 cent stake in Asia Pacific Breweries, while Thai Beverage Plc, the flagship business of Charoen’s empire, owns a 24.1 per cent in F&N.

Last month, ThaiBev’s purchase of F&N’s stake drew international attention, as F&N has been partners with Heineken in the beer business for over 80 years.

Kirin Holdings, which also owns a 15 per cent stake in F&N, is reportedly interested in bidding for APB. Meanwhile, as Heineken and ThaiBev fight for APB, there is an expectation that F&N would later sell other businesses. Coca-Cola reportedly wants a bite of F&N’s non-alcoholic beverage business. No bids have been announced yet.

-- The Nation 2012-08-08

[tig28]

Whatever it costs, don't let the thais get hold of it.

Hell no!! ------- It could end up like Red Bull !!

Some (snip) shouldn't bother.

Edited August 8, 2012 by soundman

[tragickingdom]

It is of course not a real battle. Heineken knows what kind of snake Charoen is after he screwed Carlsberg ten times over. Carlsberg, Boonrawd and Heineken love to see Charoen fall in the grave that he dug for himself.

[Microwave]

Heineken will likely overpay for F&N and perhaps even buy out Kirin. Southeast Asia in general and Asia as a whole is the fastest growing beer market in the world and Heineken needs this growth due to stagnant growth elsewhere in the world. Crafty move by ThaiBev to force Heineken to pay more. I can't see Heineken letting Asia Pacific Breweries getting away though, due to the reasons stated above.

[fullcave]

It is of course not a real battle. Heineken knows what kind of snake Charoen is after he screwed Carlsberg ten times over. Carlsberg, Boonrawd and Heineken love to see Charoen fall in the grave that he dug for himself.

yeah it was a pity about carlsberg... now we got only elephant piss..

[Chopperboy]

Whatever it costs, don't let the thais get hold of it.

Why, pray tell, would that be?

Carlsberg?

Mr. Charoen, first entered the Thai beer market in 1995 by setting up a joint venture with Carlsberg, which supplied the technology and expertise to build a brewery. It soon became clear that Mr. Charoen was more interested in using the plant to produce his new brand “Chang” than to make Carlsberg...

http://www.scandasia.com/viewNews.php?coun_code=dk&news_id=10977

[osiboy]

_{as long as the thais are not allowed to own more than 49% then good luck to them i say}

[ikbenhet]

_{as long as the thais are not allowed to own more than 49% then good luck to them i say}

And 5 farang per thai workpermit.

Edited August 8, 2012 by ikbenhet

[SGD]

Tiger is a truly awful beer.

When in Singapore, I have to plan carefully to make sure places actually sell alternatives.

[luckyman]

It is of course not a real battle. Heineken knows what kind of snake Charoen is after he screwed Carlsberg ten times over. Carlsberg, Boonrawd and Heineken love to see Charoen fall in the grave that he dug for himself.

yeah it was a pity about carlsberg... now we got only elephant piss..

Didn't you know that Carlsberg is back?

Had it in a Chinese restaurant in Pattaya a few weeks ago, the place is called Leng Kee located on Central Pattaya Rd. corner Soi Buakaw, they sell a small bottle for 50 baht.

So Delicious!!

[khaowong1]

Sorry folks, but when I was drinking beer, many years ago, my favorite was Corona. followed by San Miguel. I never could stand the taste of Thai beers. Even Vietnams 33 beer tasted better and I'm pretty sure it included horse piss in it's ingredients.

[ronthai]

As a Dutch guy, Heineken beer just us bad beer/piss.

Grolsch beer is much better Dutch beer, but not available in Thailand

In Thailand I drink Singha and if not available (almost never happens of course) I will drink Tiger, but never any other Thai beer.

[webfact]

please continue:

BEER WAR

Heineken upbeat despite Charoen's new move on F&N

The Nation

Full story:

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