Heineken's Thai rival makes bid for Tiger Beer parent

by Bernice Han

Singapore, Sept 13, 2012 (AFP) - A Thai group on Thursday made an Sg$8.7 billion ($7.1 billion) offer for Singapore's Fraser and Neave (F&N) group, the parent of an Asian brewer about to be taken over by Dutch giant Heineken.

Thai Beverage (ThaiBev), controlled by billionaire Charoen Sirivadhanabhakdi, and its partner TCC Assets, also controlled by Charoen, said in a statement they were offering Sg$8.88 per share for the 70 percent of F&N shares they do not own.

The all-cash offer came two weeks ahead of a general shareholders' meeting called by the F&N board to approve Heineken's Sg$5.6 billion offer for F&N's 40 percent stake in Asia-Pacific Breweries (APB), the makers of Tiger Beer and other popular Asian brands.

Heineken already owns 42 percent of the brewer and a takeover would give it a major advantage in the Asian market, where beer consumption is booming as sales fall in mature markets like Europe.

According to Forbes business magazine, Charoen is the third richest person in Thailand with an estimated fortune of $6.2 billion as of August with the bulk of his money coming from his beverage business.

The Thai offer for F&N became mandatory after Singapore-listed ThaiBev and TCC Assets jointly crossed the 30 percent ownership level.

"From a financial discipline perspective, ThaiBev has determined that it will not incur additional debt or expend any funds to acquire more F&N shares or to make an offer for F&N," it said in a filing to the Singapore Exchange.

Thapana Sirivadhanabhakdi, chief executive of ThaiBev, said "we believe the offer represents an opportunity for F&N shareholders to realise the value of their investment in cash and to make a complete exit from F&N".

"We hold F&N in high regard and we believe its long-established track record and success in its core businesses will be beneficial to our group".

F&N's board had already recommended acceptance of the Heineken offer in a September 28 shareholders' meeting, but rumours of a ThaiBev bid this week had triggered speculation that F&N could be broken up to unlock value.

Breaking up F&N would "allow for what might be seen as sensible release of shareholder value, to get the most out of the current structure", said Jason Hughes, head of premium client management for IG Markets Singapore.

Other companies including big names in the beverage sector such as Coca-Cola and Kirin Holdings of Japan may snap up portions of F&N to expand their presence in Asia, he told AFP on Wednesday.

-- (c) Copyright AFP 2012-09-13

Cheers i think the price of beer will go up Start drinking coffee again All about Money

Charoen is distrusted all over the world after screwing Carlsberg three times over. I can't imagine Heineken, Tiger or even one of the soft drink giants getting in bed. Charoen is considered by most beverage companies as a rat in the kitchen. Nobody has forgotten how they misused their whiskey monopoly to sell beer. People could only buy whiskey upcountry if they bought a box of beer. Boonrawd who takes ten times better care of it's employers was with Carlsberg the other big loser.

Bloody hell people have got sh** taste in beer. Heinekin and ALL of those other lager beers brewed in Asia make me sick, absolutely no taste. You want real beer, drink German, Belgian and British, especially the real ales from the UK, now thats real beer.

I bet no farang company is allowed to buy 70% of a Thai company, nice how they make rules to keep foreigners out of Thai companies and then do whatever they like when they cross borders. How many farangs work for ThaiBev in Thailand = 0

Bloody hell people have got sh** taste in beer. Heinekin and ALL of those other lager beers brewed in Asia make me sick, absolutely no taste. You want real beer, drink German, Belgian and British, especially the real ales from the UK, now thats real beer.

I bet no farang company is allowed to buy 70% of a Thai company, nice how they make rules to keep foreigners out of Thai companies and then do whatever they like when they cross borders. How many farangs work for ThaiBev in Thailand = 0

Wrong!! I know very well one Brit who is in a very senior position if their are others of not I have no idea

Must agree with tragickingdom.

The idea of Charoen picking up Tiger is not good. I remember one of the Carlsberg shaftings, didn't know it was 3 times though.