--Heineken wins approval of F&N board for bid on Asia Pacific Breweries
--Heineken offer S$5.1 billion for 39.7% of APB shares
--Heineken offer still conditional upon F&N shareholder approval
--ThaiBev and Kirin, which own 24.1% and 15% of APB respectively, hold
crucial vote
AMSTERDAM--Heineken N.V. (HEIA.AE) Friday moved a step closer to
control of Asia Pacific Breweries Ltd. (A46.SG), the maker of Tiger
Beer, after the Dutch brewer's partner Fraser & Neave Ltd. (F99.SG)
recommended the sale of its stake in APB for 5.1 billion Singapore
dollars (US$4.1 billion).
"This offer price of S$50 represents an attractive premium and the
sale of APB allows us to immediately unlock substantial value in the
beer business," F&N Chairman Lee Hsien Yang said in a statement,
recommending shareholders vote in favor of the deal.
The deal would allow Heineken to expand further in Southeast Asia and
boost its global market share through one of the fastest-growing and
most profitable beer companies in Asia. Because of lackluster sales in
Europe and North America, major brewers are increasingly looking to
expand in Asia, competing with local brands that have dominated the
beer industry for decades. China has been the focus of most brewers'
expansion, but the rapidly expanding economies of southeast Asia are
also receiving attention.
Through popular beer brands like Tiger and Bintang, APB has a near 50%
share in the combined Indonesia, Malaysia and Singapore market,
according to data provider Euromonitor, and has a strong presence in
high-growth economies like Vietnam. It has 30 breweries and 40 brands
spanning 14 Asian countries.
The Amsterdam-based company launched the S$50-a-share offer for F&N's
39.7% stake in APB late last month and if the deal closes, Heineken
will own 81.56% of APB, subject to F&N's shareholders agreeing to the
deal as well as regulatory approval. Singapore-listed Thai Beverage
PCL (Y92.SG) and Japan's Kirin Holdings Co. (2503.TO) respectively
hold 24.1% and 15% of F&N shares and their votes on the sale will be
crucial to the deal's success.
F&N holds a 7.3% stake in Asia Pacific Breweries, while Heineken owns
9.5%. Asia Pacific Investment Partners, their 50-50 joint venture,
owns 64.8% in APB.
The recommendation for Heineken's offer comes just two days after
ThaiBev, controlled by Thai billionaire Charoen Sirivadhanabhakdi,
said it had acquired a 22% stake in F&N for S$2.78 billion and has
since built up this stake to 24.1% through open market acquisitions.
A ThaiBev executive earlier this week said the company plans to
cooperate with F&N and isn't interested in buying out the entire
company. It declined to comment further on the matter Friday.
If F&N shareholders approve, Heineken will make a mandatory offer for
the remaining shares of APB, which includes an 8.6% holding owned by
Mr. Charoen's son-in-law. The remaining free float on the Singapore
stock exchange is around 9%.
Earlier Friday, Kirin President Senji Miyake said the Japanese brewer
isn't interested in controlling APB, dismissing the prospect of a
bidding war with Heineken. Instead, he said his company is more
interested in F&N's food and beverage operations, including its
Malaysian operations. Kirin couldn't immediately be reached for
further comment.
ING analyst Gerard Rijk, who has a buy rating on Heineken shares,
called the agreement a "stellar win" for Heineken, though he
highlighted the need to win support from ThaiBev and Kirin. At 1521
GMT, Heineken shares were up 3.5% at EUR46.02.
(Phisanu Phromchanya and Hiroyuki Kachi contributed to this article)
Write to Robert van den Oever at robert.vandenoever@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 03, 2012 11:45 ET (15:45 GMT)
No comments:
Post a Comment