OUE, a property firm controlled by Indonesia’s Lippo Group, has hired Credit Suisse as an adviser to help arrange billions of dollars in loans to launch a rival bid for Singapore conglomerate Fraser and Neave, sources said.
The move by Overseas Union Enterprises (OUE) is likely to force a group linked to Charoen Sirivadhanabhakdi, Thailand’s third-richest man, to extend an Oct. 29 deadline for its F&N bid and consider raising its buyout offer of $8.88 per share, or US$7.2 billion ($8.8 billion).
F&N shares are already trading 4% above the Thai offer. Thai Beverage and Charoen’s investment vehicle, TCC Assets, collectively own nearly 34% of the drinks and property group.
“OUE will have to raise more than the Thais,” said a source with direct knowledge of the matter. “Given the expected size of this (deal), there will be a number of banks involved.”
The Thai group had lined up loans of $11.8 billion to bid for F&N, Reuters Basis Point reported, initially raising funds to buy a 22% stake and raising more from bridge loans to bid for the entire firm.
OUE is trying to muster support from Japan’s Kirin Holdings, which owns 14.9% of F&N, and other parties for its bid for F&N, sources previously told Reuters.
OUE’s move comes less than two weeks after F&N’s board rebuffed its $1.4 billion offer for the group’s hospitality and serviced apartments business.
An OUE spokeswoman declined to comment. A Hong Kong-based spokesman for Credit Suisse also declined to comment.
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