A hotel and property firm controlled by Indonesia’s Lippo Group launched a $13.1 billion (US$10.7 billion) bid for Fraser and Neave (F&N), trumping a takeover offer from Thailand’s third-richest man for the Singapore conglomerate.
A consortium led by Overseas Union Enterprise (OUE) is offering $9.08 per share for F&N, OUE said in a statement on Thursday, beating the Thai offer of $8.88 a share.
The offer is conditional on the group receiving at least 50% acceptance, it said.
Japan’s Kirin Holdings, F&N’s second-biggest shareholder with a stake of around 14.8%, has agreed to accept the offer subject to certain conditions, OUE said. Kirin will offer to buy F&N’s food and beverage business for $2.7 billion if the OUE group’s bid is successful.
Credit Suisse, Bank of America Merrill Lynch and CIMB are the financial advisors to the group. OUE is controlled by Indonesia’s Riady family through the Lippo Group.
“F&N is a Pan-Asian consumer group with strong standing in property, F&B, publishing and printing industries. Its property portfolio would be highly complementary to OUE’s existing property portfolio,” said Stephen Riady, executive chairman of OUE, in the statement.
“Combining both will further strengthen OUE as a leading property player in Singapore and expand our footprint in Singapore and regionally,” he added.
OUE’s attempt to prise F&N away from Thai billionaire Charoen Sirivadhanabhakdi comes on the heels of Heineken NV’s successful takeover of Asia Pacific Breweries, the maker of the popular Tiger Beer.
Charoen, through TCC Assets Ltd and Thai Beverage PCL, made a US$7.2 billion bid in September to buy shares of F&N that he did not already own. The offer values the entire Singapore group at around $12.8 billion.
The Thai consortium has twice extended its offer from the original Oct. 29 deadline. The latest closing date is Nov. 22.
F&N has said the $8.88 per share offer was at the lower end of its estimated valuation of between $8.30 and $11.22. The company’s shares have been trading above the Thai offer.
The Thai group is F&N’s biggest shareholder with a 33.6% stake, and can acquire another 2.8% from shareholders who accepted its offer. The Thai offer is conditional on the group obtaining majority control of F&N.
Household names in Southeast Asia such as the 129-year-old F&N and Yeo Hiap Seng have popped up on the acquisition radar of companies looking to expand aggressively in the region, analysts say.
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