THAI BEVERAGE is working with a partner on a potential bid for Fraser and Neave Ltd (FN) to get its hands on the Singapore company’s property and soft drinks businesses after Heineken took pole position in the battle to buy FN’s prized beer brewer.
For two months, ThaiBev and Heineken fought for control of Asia Pacific Breweries Ltd (APB), maker of Tiger beer. Heineken eventually raised its offer to $6.3 billion and won over F&N, which agreed to sell its APB stake to the Dutch brewer.
The deal requires approval from F&N shareholders, including ThaiBev. Should the Thai group gain control of F&N, it could potentially block the transaction.
However, sources with knowledge of ThaiBev’s plans say the group is shifting its focus to F&N because it would reap a handsome windfall from the improved Heineken deal and could profit from the possible break-up of F&N’s other assets.
Based on its 29 per cent stake in F&N, ThaiBev stands to gain S$1.16 billion from Heineken buying APB. Any move to block the Heineken deal will force the Dutch brewer to walk away, putting the shares of both F&N and APB under pressure. – (Reuters)
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