Fraser & Neave, the Asian-based soft drinks company announced today it would be conducting a S$237m (US$129m) capital distribution.

Despite the move, F&N's chairman Micheal Fam said the company's stock was still undervalued. "We are of the view that the company's share is still substantially undervalued, given its strong asset backing and promising prospects for growth," he told a shareholders meeting.

Analysts said the move should please shareholders. F&N shares hit their highest level for four years at S$8.50 before ending at S$8.35, up 30 cents.