SINGAPORE: Fraser & Neave says OUE offer "not compelling, but fair"

By | 19 December 2012

F&N has given advice to its shareholders over the OUE offer

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. 

Expert analysis

Carbonated Soft Drinks in Asia-Pacific

Carbonated Soft Drinks in Asia-Pacific industry profile provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Essential resource for top-line data and analysis covering the Asia-Pacific carbonated soft drinks market. Includes market size and segmentation data, textual and graphical analysis of market growth trends, leading companies and macroeconomic information.

Sectors: Beer & cider, Mergers & acquisitions, Soft drinks

Companies: Kirin

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SINGAPORE: Fraser & Neave says OUE offer "not compelling, but fair"

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