NETHERLANDS/SINGAPORE: Heineken set to take control of Asia Pacific Breweries

By Olly Wehring | 3 August 2012

Fraser & Neave has sold its stake in Asia Pacific Breweries to Heineken

Heineken has received approval from Fraser & Neave to secure full control of Asia Pacific Breweries from its longstanding partner.

The Netherlands-based brewer, which launched its bid to buy Fraser & Neave out of APB last month, confirmed today (3 August) that the Singapore conglomerate's board has recommended its offer of SGD50 per share in the brewing alliance. The transaction will cost Heineken in the region of SGD5.1n (US$4.09bn).

Fraser & Neave is in the process of arranging an EGM to put the offer to its shareholders.

Heineken and F&N jointly own Asia Pacific Investment Pte Ltd, which holds around 65% of APB. Heineken owns around 9.5% of APB on its own, while F&N has about 7.3% of APB. Upon conclusion of the purchase, Heineken will make a mandatory general offer to sweep up the remaining shares in APB that it would not own for SGD50 per share.

Heineken will be pleased to see the transaction conclude, having been made to wait a week by F&N late last month. Recent moves by ThaiBev to up its stake in F&N had forced Heineken to move for APB, after setting up the JV with F&N back in 1931. The brewer has also had to deal with Japan's Kirin Holdings owning almost 15% of F&N.

Expert analysis

Heineken N.V. (HEIA) - Financial and Strategic SWOT Analysis Review

Heineken N.V. (Heineken) is one of the world’s leading brewers. It is Europe’s foremost brewer and the world’s third largest by volume. The company focuses on brewing and selling beer. It offers international premium, regional, local, and specialty beers and ciders under the Heineken brand name. Other major brand offerings of the company include Amstel, Birra Moretti, Cruzcampo, Desperados, Primus, Sagres, Strongbow Gold, Bulmer's, Sol, Newcastle Brown Ale, Dos Equis, Foster’s, Ochota, Star, Tecate, Zlaty Bazant and Zywiec. The company's leading joint venture brands include Tiger, Kingfisher, Cristal, and Anchor. Heineken is headquartered in Amsterdam, the Netherlands. The company is investing in new business initiatives aimed at leveraging the scale of its global operations, including purchasing, logistics, marketing, and tax. These initiatives enable Heineken to deliver high quality services to the business, while achieving operational cost efficiencies.

Sectors: Beer & cider, Mergers & acquisitions

Companies: Heineken, Kirin

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