SINGAPORE: Government body intervenes in Fraser & Neave battle

By | 16 January 2013

The F&N bidding war looks set to reach its conclusion

The F&N bidding war looks set to reach its conclusion

TCC Assets and Overseas Union Enterprise (OUE) face an auction unless they can resolve their bidding war over Fraser & Neave, a government watchdog has warned. 

The two companies have extended the deadlines on their offers for the Singapore conglomerate multiple times in recent weeks. Initially, ThaiBev-controlled TCC Assets launched a SGD9bn (US$7.36bn) all-cash offer for F&N in October. But OUE, a Singapore-based property group, topped that offer with a SGD13.1bn (US$10.7bn) bid in November. 

However, Singapore’s Securities Industry Council (SSIC) yesterday (15 January) intervened in the situation. It said the latest time for a “revised” offer is this Sunday (20 Sunday). After this, if the situation is not resolved an “auction procedure” will kick-in, the SSIC said. 

Explaining its move, the watchdog said: "Given that neither TCC nor OUE has declared its offer final, such that either offer may be increased or otherwise revised, the council considers that the company’s shareholders should be provided with certainty to make their investment decisions in respect of the competing offers.” 

If the OUE bid is successful, Kirin Holdings has agreed to acquire F&N's food and beverage business for SGD2.7bn.

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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