Heineken Clears Thai Hurdle To Buy Singapore Brewer Apb

[webfact]

Heineken clears Thai hurdle to buy Singapore brewer APB

by Bernice Han

Singapore, Sept 19, 2012 (AFP) - Dutch beer giant Heineken on Wednesday moved one step closer to a $4.6 billion takeover of top Asian brewer APB when it gained the backing of a Thai rival ahead of a vote on the issue.

Thai Beverage (ThaiBev) and TCC Assets, both controlled by tycoon Charoen Sirivadhanabhakdi, said in a joint statement with Heineken that they will support the Dutch firm's bid to gain control of Asia-Pacific Breweries.

Heineken in turn promised not to make a counter-offer for APB's parent company Fraser and Neave (F&N), which the Thais want to take over.

Heineken already owns 42 percent of Singapore-based APB and offered Sg$5.6 billion ($4.6 billion) for the 40 percent stake held by F&N, which is 30 percent controlled by the Thai firms.

In Wednesday's joint statement to the Singapore Exchange, Heineken said it "irrevocably undertakes not to make a general offer" for F&N, in which it currently has no stake.

The Thais' surprise offer last week to buy all of F&N had cast doubt on Heineken's offer for APB, which is to be decided at an extraordinary general meeting of F&N shareholders on September 28.

APB, the crown jewel of F&N, makes Tiger Beer and other popular brands in Asia, where beer consumption is rapidly growing as sales taper off in mature markets like Europe, Heineken's traditional base.

ThaiBev makes Chang Beer and is also involved in food and non-alcoholic drinks.

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.

APB, which has breweries in 14 countries including China, reported in August that its revenues for the third quarter to June rose almost 10 percent to Sg$781.33 million from a year ago.

Heineken's bid for control of APB is seen as part of an attempt to have an edge over other rivals in the 10-member Association of Southeast Asian Nations (ASEAN) market of some 600 million consumers as well as China.

Apart from Tiger and Chang Beer, San Miguel from the Philippines and Indonesia's Bintang, also owned by APB, are competing with Heineken, Denmark's Carlsberg and other brands from developed economies.

Beer consumption in nine ASEAN countries totalled 6.84 billion litres in 2011, up around 6.2 percent from 2010, with Vietnam, Thailand and the Philippines leading the market, data from research firm Euromonitor showed.

-- (c) Copyright AFP 2012-09-19

[webfact]

BEER WAR

Charoen gives way to Heineken's takeover

The Nation

Cases of Chang beer are ready for export. Charoen needs new plan to promote his beer overseas. /Photo by EPA

BANGKOK: -- Thai Beverage Plc and TCC Assets Ltd (TCCA) - two firms majority owned by Thai tycoon Charoen Sirividhanabhakdi and his wife, Khunying Wanna - today announced that they would no longer contest Heineken's bid for Asia Pacific Breweries.

In a statement to the Singapore Exchange, they said that at the upcoming meeting of F&N shareholders on Sept 28, they would vote for sale of F&N’s direct and indrect interests in APB to Heineken.

In return for this promise, "Heineken irrevocably undertakes not to make a general offer for shares in F&N under the Singapore Code on take-overs and mergers."

The combined stake of ThaiBev and TCCA in F&N reached 30.36 per cent as of last Thursday. TCC is launching an offer to buy all remaining shares in F&N in the open market. Other major shareholders of F&N included Kirin International Holdings, Japan’s second largest brewer which has so far avoided the takeover wrangling.

F&N holds 40 per cent per cent of direct and indirect interests in APB, the brewer of Tiger beer which has breweries in 14 countries. Heineken’s stake in APB is relatively the same.

The decision ends the months-long competition between ThaiBev - the maker of Chang beer and Thailand’s largest brewer by volume - and Heineken which is now the world’s third largest brewer.

Last week, TCCA’s offer for all shares in F&N not held by ThaiBev affirmed Charoen’s dire need for a larger presence in the Singapore food and drink company.

-- The Nation 2012-09-19

[theblether]

I was amazed to see a guy buy a case of Chang in a shop in Glasgow last week...........it just goes to show that some people will drink anything, even when they have a choice.

[Payboy]

Cases of Chang beer are ready for export.

Looks like those are just cases of Chang Export. I suppose they don't really export them with all the Thai marking.

[clockman]

Not that i regard this as real beer, but good to see no Thai victory

[ThaidDown]

Looks like a good deal from Khun Charoen's point of view. Heineken had to up their bid a couple of times for APB, which means ThaiBev and TCCA will receive more for there current stake in APB via their holdings in F&N and also Heineken will not be competing in the takeover of F&N by TCC.

Almost think thats what he had in mind from the start as, personally, I do not think he had any chance of outbidding Heineken for APB. Heineken must have a brewery in this region..

Only my opinion though.

[draftvader]

Beer for business removes flavour, passion and real choice. It is really that simple. Same for food, art & music. Taste micro-brewery beer and you'll know this is true.

[SGD]

Merely a play to extract a higher price for their investment once Heineken tipped its hand and wanted to do a deal.

[luckyman]

I was amazed to see a guy buy a case of Chang in a shop in Glasgow last week...........it just goes to show that some people will drink anything, even when they have a choice.

he misses Thailand perhaps?

[BangkokMatt]

@Clockman - Why is not real beer. It might not be the best beer but..........also, I'm not sure why it is "good to see no Thai victory". I take it you don't live here, or are having some bad feelings due to some poor decisions on your part.

Seems like a reasonable move for Charoen.

Edited September 19, 2012 by BangkokMatt