DJ Kirin Considering Bid for Fraser & Neave's Soft Drink, Dairy Assets - Source
SINGAPORE--Japanese beverage group Kirin Holdings Co. Ltd. (2503.TO) is considering a bid for the soft drinks and dairy assets of Singapore conglomerate Fraser & Neave Ltd. (F99.SG), a person familiar with the situation said Thursday.
The Japanese group is considering a bid for the conglomerate's Malaysian unit, Fraser & Neave Holdings Bhd. (3689.KU) and brands such as isotonic drink 100 Plus, Seasons and Fruit Tree, the person said.
Kirin already owns a 15% stake in Fraser & Neave, which it acquired from Singapore state investment firm Temasek Holdings in 2010.
The planned move follows Heineken NV's (HINKY) 5.1 billion Singapore dollar (US$4.1 billion) offer last week to buy out Fraser & Neave's stake in Asia Pacific Breweries Ltd. (A46.SG), a joint venture between the Dutch brewer and Singapore company that produces Tiger beer.
"Kirin wants to ride on the current momentum," the person said, adding a potential bid for Asia Pacific Breweries could be complicated.
The person also said the market capitalization for the soft drinks business is around US$2 billion and that funding the acquisition could be easily achieved.
A Fraser & Neave spokeswoman declined to comment. A Kirin spokesman declined to comment.
Kirin has been weighing various options after Heineken's bid last week to take control of Asia Pacific Breweries. People familiar with the matter told Dow Jones Newswires Monday Kirin, one of Japan's biggest brewers, is in early discussions with bankers about a potential bid for Asia Pacific Breweries.
Asia Pacific Breweries has a strong presence in countries such as Singapore, Malaysia, Indonesia and Vietnam; Kirin is looking to expand beyond its domestic market, where the company's sales are slipping.
Still Kirin -- the second-largest Japanese brewer by domestic market share, after Asahi Group Holdings Ltd. -- already has spent more than 1 trillion yen (US$12.74 billion) on overseas acquisitions since 2007.
Apart from buying a stake in San Miguel, Kirin last year bought Schincariol, a Brazilian brewer, for $3.9 billion.
