DJ Thai Billionaire to Support Heineken's US$4.5 Billion Bid for F&N Stake in Asia Pacific Breweries
19 Sep 2012 05:36
*DJ TCC Assets, Thai Bev: To Vote In Favor of Heineken's Offer to Buy F&N's Stake in Asia-Pacific Breweries


(MORE TO FOLLOW) Dow Jones Newswires

September 18, 2012 16:25 ET (20:25 GMT)

*DJ TCC Assets, Thai Bev: Heineken Has Undertaken Not to Make General Offer for Shares in Fraser & Neave


(MORE TO FOLLOW) Dow Jones Newswires

September 18, 2012 16:27 ET (20:27 GMT)

*DJ Fraser & Neave Shareholders to Meet Sept. 28 to Vote on Heineken's US$4.5 Billion Offer for Asia Pacific Breweries


(MORE TO FOLLOW) Dow Jones Newswires

September 18, 2012 16:30 ET (20:30 GMT)

DJ Thai Billionaire to Support Heineken's US$4.5 Billion Bid for F&N Stake in Asia Pacific Breweries

By P.R. Venkat
SINGAPORE--Heineken NV (HINKY, HEIA.AE) Wednesday scored a major victory in its US$4.5 billion bid to acquire Fraser & Neave Ltd.'s (F99.SG) entire stake in Asia Pacific Breweries Ltd. (A46.SG), after a potential opponent and a key shareholder announced support for the Dutch brewer's offer.

The shareholders of F&N are due to meet Sept. 28 to vote on Heineken's offer to buy F&N's entire 39.7% stake in the maker of Tiger beer. But recent moves by the companies of Thai billionaire Charoen Sirivadhanabhakdi to bulk up their stake and make a general offer for F&N had created uncertainty over the fate of Heineken's offer.

In a joint filing to the Singapore Exchange, Thai Beverage PCL (Y92.SG) and TCC Assets--which are controlled by Mr. Charoen--and Heineken said that while Mr. Charoen's units "irrevocably" plan to vote in favor of Heineken's offer for the stake, the Dutch company has in turn promised not to bid for the whole of F&N, which has other businesses, including property and soft drinks, that interest Mr. Charoen.

Gaining control of Asia Pacific Breweries, the jewel in the crown of F&N, would give Heineken the much-needed boost to consolidate its position in the fast-growing Asia beer market. Full control of Asia Pacific Breweries would see Heineken owning the Tiger and Bintang APB beer brands that make up nearly 50% of the beer market in Indonesia, Malaysia and Singapore, according to data provider Euromonitor.

Asia Pacific Breweries has 30 breweries and 40 brands spanning 14 Asian countries. It also brews Heineken beer for some markets in the region. Asia Pacific Breweries, an 81-year-old joint venture between F&N and Heineken, first came into play in July, when ThaiBev first bought a 22% stake in F&N, forcing Heineken to make a US$4.1 billion offer for the brewing asset. At that time, Mr. Charoen's son-in-law Chotiphat Bijananda also bought a 8.6% stake in Asia Pacific Breweries.

Last month, Heineken raised its offer for Asia Pacific Breweries to US$4.5 billion, representing a price-to-earnings ratio of 35.1 times earnings, well above peers including Carlsberg Brewery Malaysia Bhd. (2836.KU), which trades at about 20.3 times earnings, and Japan's Sapporo Holdings Ltd. (2501.TO), at 16.6 times. Its sweetened offer reflected its desire to acquire an asset that would give it exposure to a growing region at a time of slowing growth at home.

Heineken now has a direct and indirect stake of 46.75% in Asia Pacific Breweries.