Fraser & Neave will be in focus after ThaiBev and TCC Assets, both tied to Thai tycoon Charoen Sirivadhanabhakdi, made a $8.88/share takeover bid for the Singapore conglomerate, possibly upsetting Heineken’s bid for F&N’s APB holdings.
ThaiBev’s intentions remain a mystery, says Jason Hughes, head of premium client management at IG Markets Singapore, in a note; “ThaiBev may still want to sell F&N’s APB shares to Heineken and use the money to purchase F&N and then break it up. They also may want to take control of F&N to stop it selling its APB stake to Heineken. Both scenarios have equal probability.”
He notes talk ThaiBev may be interested in F&N’s non-beverage assets, such as property, but expects it would probably want to break the conglomerate up.
“We still think ThaiBev is more interested in the alcoholic business of F&N, of which APB is the jewel in the crown. It would hate to see Heineken gain control of this and increase its foothold in Asia at ThaiBev’s expense.”
The move will create some uncertainty among F&N shareholders heading into the Sept. 28 EGM to vote on the APB bid, he says. F&N shares are halted; they last changed hands at $8.51. ThaiBev is up 2.9% at $0.35 in strong volume.
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