Whether there will be a general offer for Malaysian-listed Fraser & Neave Holdings depends on who ultimately controls parent company F&N, CIMB says.
Kirin, a 14.8% F&N stakeholder, has said it will accept the OUE-led consortium’s $9.08/share offer for F&N and the Japanese brewer will make a binding cash offer to acquire F&N’s F&B business for $2.7 billion with OUE’s blessing, CIMB notes.
“This is significant as it is the first time Kirin has made clear its intentions to buy F&N’s F&B business.” It adds, if OUE is successful and Kirin buys the F&B business, it expects Kirin would then need to make a general offer for F&N Holdings as the majority of the non-beer F&B business comes from F&N Holdings, which would have had a change in major shareholder.
If TCC Assets trumps OUE’s bid, there likely won’t be a general offer for F&N Holdings, it says. It keeps an Underperform call with MYR18.60 ($4.64) target, but adds, if OUE gains control of F&N and sells the F&B business to Kirin, its target could rise to MYR20.38. Fraser & Neave Holdings shares are down 0.7% at MYR19.16.
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