Heineken Says Thai Billionaire Backs Its APB Takeover Offer (2)
2012-09-19 03:18:49.575 GMT
(Updates with strategist’s comment in third paragraph.)
By Clementine Fletcher
Sept. 19 (Bloomberg) -- Heineken NV cleared the biggest
hurdle in its fight to take control of Asia Pacific Breweries
Ltd. as billionaire stakeholder Charoen Sirivadhanabhakdi’s Thai
Beverage PcL pledged its support.
ThaiBev and Charoen’s TCC Assets Ltd. will back Heineken’s
S$5.6 billion ($4.6 billion) bid for Fraser & Neave Ltd.’s 40
percent stake in the beermaker at a shareholder meeting next
week after the Dutch brewer agreed not to make a competing offer
for F&N, the Amsterdam-based brewer said yesterday. Heineken and
F&N have controlled APB through a joint venture set up in 1931.
"They’re both going to win from this situation," which may
lead to distribution agreements if Heineken and ThaiBev stay
amicable, said Justin Harper, a Singapore-based market strategist
at IG Markets, said. "Heineken will win control of APB and
Charoen will have a smooth acquisition of F&N with the view to
breaking it up."
APB would be the Dutch brewer’s largest acquisition since
its 2010 purchase of Fomento Economico Mexicano S.A.B’s
beermaker as it seeks to expand in faster-growing emerging
markets, according to data compiled by Bloomberg. Singapore-
based APB has rights to brew Bintang in Indonesia, Anchor in
China, Southeast Asia and Sri Lanka, and Heineken from China to
New Zealand.
ThaiBev Climbs
ThaiBev gained 7.25 percent to 37 Singapore cents, headed
for the biggest increase since July 20. F&N fell 0.9 percent to
S$8.89 in Singapore trading while APB declined 0.2 percent to
S$53.01.
TCC, controlled by 68-year-old Charoen, offered S$9 billion
on Sept. 13 to buy the 70 percent of F&N he didn’t control,
throwing Heineken’s takeover of APB into doubt. Heineken had
originally been spurred to bid for control of APB, of which it’s
the majority shareholder, after a company controlled by
Charoen’s son-in-law bought shares in APB.
"This significantly improves the level of certainty that
our offer will be approved," John Clarke, a spokesman for
Heineken, said by telephone.
Vichate Tantiwanich, senior vice president and spokesman
for Thai Beverage, declined to comment on Heineken’s statement.
Acquisitive Brewer
F&N shareholders are scheduled to meet Sept. 28 to vote on
Heineken’s offer to buy F&N’s shares in APB. F&N recommended
that holders accept Heineken’s increased S$53-per-share bid in
August. Heineken, the world’s most acquisitive brewer in the
past 12 months, had said that would be its final offer.
F&N also has a food and soft-drinks unit and a real estate
division. TCC Assets, linked to Charoen’s Thai Bev, offered
S$8.88 a share for F&N. The bid was the largest announced by a
Thai company in at least 10 years, according to data compiled by
Bloomberg.
The agreement "should be very positive for Heineken’s
share price," said Gerard Rijk, an analyst at ING Groep NV in
Amsterdam. "The company will not need to raise its offer
further and it will be able to consolidate the APB business."
Charoen’s agreement to support Heineken’s offer for APB may
spur speculation that he would break up F&N, a 129-year-old
group. Japan’s Kirin Holdings Co. owns a 15 percent stake in F&N
and had considered making a bid for its food and soft-drinks
unit, several people with knowledge of the matter said in
August. Coca-Cola Co. explored a bid for the drinks operations,
people with knowledge said.
Kirin rose 1.8 percent to 1,029 yen in Tokyo trading today.
Company spokeswoman Yuko Kusano declined to comment.
F&N got 30 percent of its 2011 revenue of S$6.3 billion
from property, 12 percent from soft drinks and 17 percent from
dairies, according to data compiled by Bloomberg.
For Related News and Information:
Heineken acquisitions: HEIA NA <EQUITY> CACS21 <GO>
Earnings estimates for Heineken: HEIA NA <EQUITY> EEB <GO>
ThaiBev break chart: THBEV SP <Equity> TLBC <GO>
APB ownership: APB SP <Equity> PHDC1 <GO>
Mergers and acquisition search: MA <GO>
--With assistance from Frank Longid in Hong Kong, Jonathan
Burgos in Singapore, Anuchit Nguyen in Bangkok and Yuki
Yamaguchi in Tokyo. Editors: Frank Longid, Stephanie Wong
To contact the reporter on this story:
Clementine Fletcher in London at +44-20-7330-7285 or
To contact the editors responsible for this story:
Celeste Perri at +31-20-589-8505 or
Stephanie Wong at +852-2977-6036 or
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