SINGAPORE: Fraser & Neave says OUE offer "not compelling, but fair"
F&N has given advice to its shareholders over the OUE offer
Fraser & Neave's board of directors has branded Overseas Union Enterprise's (OUE) SGD13.1bn (US$10.7bn) offer for the group as “not compelling, but fair”.
The Singapore conglomerate released a 116-page circular to shareholders today (19 December), outlining its opinion on the offer. OUE, a Singapore-based property group, submitted its bid for F&N last month, beating an offer from ThaiBev.
Following advice from JP Morgan, F&N's board said today: “The OUE offer price is not compelling but fair, from a financial point of view.” The view mirrors that of F&N's view on the ThaiBev offer.
If OUE captures F&N, Kirin has agreed to acquire F&N's food and beverage business. In the circular, JP Morgan says Kirin's offer for this part of the business is "fair, from a financial point of view".
ThaiBev, which owns around 33.64% of F&N, submitted a SGD8.88 per-share offer for the conglomerate in September through TCC Assets - a special purpose vehicle part-owned by ThaiBev boss Charoen Sirivadhanabhakdi. Since then ThaiBev has extended the deadline for its offer three times, with the latest set at 2 January.
Meanwhile, the Chang brewer announced late last night that another subsidiary, Internationnal Beverage Holdings Limited, has transferred its 28.63% stake in F&N to its own wholly-owned subsidiary, Interbev Investment Limited.
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