SINGAPORE: Heineken circles 28 September for Fraser & Neave vote on APB

By | 6 September 2012

Heineken can expect its battle for Asia Pacific Breweries to conclude later this month

Heineken can expect its battle for Asia Pacific Breweries to conclude later this month

Fraser & Neave has set a date for a shareholder vote on Heineken's offer for its stake in their brewing joint venture, Asia Pacific Breweries.

The Singapore-based conglomerate, whose board accepted Heineken's second offer for its APB holding in August, said earlier today (6 September) that it will hold an EGM on 28 September. The board used the meeting announcement to reiterate its support for Heineken's SGD53-per-share offer for F&N's 39.7% total stake in APB, which would cost the Dutch brewer about SGD5.4bn (US$4.3bn).

The transaction, should it proceed, would see SGD4bn distributed to F&N shareholders by way of a capital reduction of one for every three shares, at SGD8.50 per cancelled share.

“The resolution on the proposed disposal of F&N’s stakes in APB … to Heineken requires approval by a simple majority of shares present and voting at the EGM, while the proposed capital reduction requires the votes of 75% of shares present and voting at the EGM,” F&N said today.

While Heineken remains confident that the transaction will proceed - it will receive a SGD56m break fee from F&N should the deal not complete – the brewer will still be keen to see the matter resolved. With ThaiBev holding a healthy stake in F&N and Kirin Holdings also in the mix, Heineken will be counting down the days to the EGM.

To read Fraser & Neave's official statement, click here.

Expert analysis

Asia Pacific Breweries Limited (A46) - Financial and Strategic SWOT Analysis Review

Asia Pacific Breweries Limited (APB) principally engages in brewing and sale of beer and stout. Through its subsidiaries, joint ventures and associated companies, APB operates 31 breweries in 12 countries across the Asia Pacific region. Key markets of the company include Singapore, Malaysia, Mongolia, South Asia, Papua New Guinea, New Zealand, Indochina, China and Thailand. The company has a portfolio of over 40 beer brands and brand variants, including Tiger Beer, Heineken, Anchor and ABC Stout. Various subsidiaries of the company include Asia Pacific Breweries (Singapore) Pte Ltd, Tiger Export Pte Ltd, Cambodia Brewery Ltd, and DB Breweries Limited, among others. The company is headquartered in Singapore.

Sectors: Beer & cider, Mergers & acquisitions

Companies: Heineken, Kirin

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SINGAPORE: Heineken circles 28 September for Fraser & Neave vote on APB

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