BRUSSELS: Dutch brewer Heineken took a major step towards taking control of Asia's Tiger beer by securing acceptance from a Thai billionaire who had been viewed for weeks as a spoiling rival.

Charoen Sirivadhanabhakdi's ThaiBev and TCC Assets Ltd agreed to support the sale of Singapore conglomerate Fraser and Neave's stake in Tiger beer maker Asia Pacific Breweries Ltd to Heineken NV.

In return, the world's third-largest brewer will not make a general offer for shares in F&N, according to the joint statement by the Thai companies and Heineken released late Tuesday European time and in the early hours of Wednesday in Asia.

Charoen, whose companies own just below 31 percent of F&N, launched a $7.2 billion offer last week to acquire the rest, a move seen at the time as possibly derailing Heineken's $6.3 billion bid to buy out the holdings of F&N and others in APB.

After two months of steadily higher offers for F&N and APB, bound together by a complex ownership structure, the Thais and the Dutch brewer ended their standoff.

Now Heineken, the world's third largest brewer, appears on course to succeed in taking full control of APB. F&N's board has already backed the deal and F&N shareholders will vote on Sept 28.

PRECURSOR OF F&N BREAK-UP?

Heineken described the deal as a good next step, although it will also need other shareholders to vote in favor.

"It significantly improves our level of certainty that our offer will be accepted," said Heineken spokesman John-Paul Schuirink.

Shareholders may be persuaded to back the Heineken deal by the proposal of F&N's board to use the proceeds to pay out S$4 billion ($3.27 billion) through a capital reduction.

F&N's other large shareholders include Japan's Kirin Holdings Co Ltd <2503.T>, with a near 15 percent stake. Kirin has previously said it is interested in F&N's food and non-alcoholic drinks business.

At S$53 per share, Heineken's offer is regarded as generous by many analysts - some 18 times core profits (EBITDA), above the 15.4 times paid by Anheuser-Busch InBev to take control of Mexico's Modelo in June.

APB shares closed on Tuesday at S$53.09.

In turn, the path is clear for Charoen, Thailand's third-richest man, to profit from the Heineken payout and expand in Asian property and soft drinks - the main businesses left in F&N after the sale of its beer interests.

However, industry watchers say the Thais may need to pay more than their current offer of S$8.88 per share if they are serious about gaining control of F&N. Its shares closed on Tuesday at S$8.97.

The TCC offer, backed by loans from Singapore banks DBS Group Holdings Ltd and United Overseas Bank Ltd , will not be formally presented to shareholders for another couple of weeks.

The divestment of its brewing assets and the offer from the Thais could force a full break-up of Fraser and Neave.

The Thais recently bought out Pepsi's bottling business in Thailand and Charoen already has substantial property investments in Singapore.

F&N's property portfolio, worth more than S$8 billion, has also attracted the interest of Blackstone Group LP and other global property companies, sources have told Reuters, while the beverage business could appeal to potential suitors including Coca-Cola Co . ($1 = 1.2251 Singapore dollars) - Reuters

• 
• 
• 

More News Business Headlines      Maybank sells 9% stake of PT Bank International Indonesia      KLCI closes 0.59% lower amidst Fed's end of stimulus, China slowdown      More Singaporean companies making prompt payments      Luster waiting for concrete offer before deciding      Spot gold falls to lowest since January 2011      Ivory Group to start phase 3 to 5 of Penang Times Square by year-end      Japanese corporates might be eyeing Malaysia as operational hub      MHTC eyes RM630mil revenue for medical tourism      Lazada secures RM320mil fund      MBM Resources targets RM4b revenue by 2015      MRCB gets go-ahead for Nusa Gapurna merger (Update)      Asian markets in the red, KLCI down 10 points at midday (Update)      Malaysia PC sales hit 898,000 in Q1, 2013, Lenovo top vendor      RHB Research maintains "Neutral" on auto sector      Kulim Malaysia offers RM812.3m for another 20% stake in NBPOL (Update)      RHB Research maintains "Neutral" on IHH Healthcare      Sumatec up ahead of meeting on O&G asset buy plan      Ringgit falls to 1-yr low at 3.2010 versus US dollar      Malaysia's KLCI falls nearly 10 points in early trade      Malaysian equities to face selling pressure on Thursday      Public Invest Research: TSH Resources becoming big cap plantation company      US stocks down after Bernanke hints at slowing stimulus      Assore - Assmang approves ferromanganese joint venture in Malaysia      CIMB Research ups MY EG target price to RM1.74      Malaysia-Market factors to watch on June 20(Thursday)      Kulim to take another 20% stake in New Britain Palm Oil Ltd (Update)      Nusa Gapurna rejects PKNS offer to up stake in PJ Sentral      AirAsia wants no further delays in opening of new low-cost terminal KLIA2      AirAsia signs RM27.5bil engine deal      AirAsia X shares worth up to RM1.66 each      Use of psychometrics assessment for employees can be controversial      Low bids for Hwang-DBS due to the banking group’s poor Q3 results      Reality check on Asean Economic Community, is it rather ambitious?      Sumatec shareholders to vote on Kazakhstan oil and gas asset buy      Genting’s Aussie move a surprise      3 parties said to be in talks to take over Luster      MISC to consolidate ops, re-balance portfolio and income mix      Malaysian market closes lower      Pos Malaysia proposes 9.5 sen final dividend      Stability boost for UEM Sunrise project in Iskandar      IGB buys into Johor-based property developer      Tambun Indah plans RM200mil capex to expand landbank      MAS to beef up ties with six code share partners      Consumer Price Index up 1.6% in May      CEO: MBSB not in hurry to get banking licence      Banks urged to implement Basel III within proper context      Tune Ins sees healthy growth in earnings      Etiqa sees good family takaful growth      Integrax may gain if TNB wins      Petronas Dagangan eyes airports      MARC assigns AA+IS rating to Kapar Energy      Eversendai tendering for RM8bil projects      Asian businesses optimistic, sentiment index highest in five quarters      GM revs up plans for Cadillac in China luxury market      Robinsons plans up to US$924mil Philippine IPO      Send reckless bankers to jail, say UK lawmakers      Finnish economy set to shrink on weaker exports      Asia Business Sentiment Survey - by economy      New book-keeping rule to priprizese open insurers' 'black box' accounts      Microsoft reverses position on Xbox One Internet, game sharing      Bernanke says Fed likely to reduce bond buying this year      Microsoft talked with Nokia about buying devices unit      Bernanke says Fed likely to reduce bond buying this year      Japan's conservative values collide with plan to mobilise women for economy      Britain to start sale of Lloyds soon, review RBS split      Bernanke says Fed likely to reduce bond buying this year      Britain, France face EU action over high Eurostar charges  Go

• Sabah RCI: Refugee gets citizenship after two years, now secretary of BN branch
• Air quality in Johor the worst in years, haze-related health complaints increase
• China lifts freeze on Malaysian bird's nest imports
• Sabah state assembly: Heavy metals found in 14 dead elephants in Sabah's interior
• Boy dies, six people badly injured after express bus overturns
• Website says Kuala Lumpur is world's sixth most dangerous city, readers disagree
• Parliament deputy speakers: One each from Pakatan and BN, suggests Anwar
• Haze: All Batu Pahat schools to close for two days
• Selangor to set up commission to investigate allegations of electoral fraud in GE13
• Court rules William Yau’s death as misadventure
• Six men with parang cart away RM400,000 worth of jewellery
• Tee’s MCA membership suspended for three years
• Toddler suffocated after being pinned down, doctor tells court
• Haze: Schools have discretion to close when air quality turns hazardous, says Education DG
• NS to trainees: “If you are pregnant, tell us”

• China astronaut teaches lesson from space
• Singapore demands urgent Indonesia action on smog
• Assange says WikiLeaks assisting Snowden asylum bid
• Kim Dotcom slams Megaupload 'data massacre'
• Study: Jordan teens still 'honour killings' justified

• Murray poised to end Britain's 77 years of pain
• Steady as Jie goes
• Ferrer loses title after opening round loss
• Park preps for third major title bid at LPGA event
• Gavin Green confident he can take on title-holders this weekend
• Zhang switches focus on developing golf in China
• Thaworn hopes to find his ‘A’ game in Selangor Masters
• Paul Revington is glad to be back to train the Malaysian team
• Heavy task on Faizal’s shoulders
• Singapore Open: Chong Wei Feng fights to survive
• Rachel owes her rich vein of form to change in technique
• Future looks gloomy for men’s squash when Beng Hee calls it a day
• Khairy: RM8mil to be forked out for Sukma due to lack of sponsorship
• A chance for local cyclists to shine
• Rahul survives weekend of harsh hurdles in Norfolk

• Please wait.

• Use of psychometrics assessment for employees can be controversial
• Sumatec shareholders to vote on Kazakhstan oil and gas asset buy
• Sumatec up ahead of meeting on O&G asset buy plan
• Malaysia PC sales hit 898,000 in Q1, 2013, Lenovo top vendor
• AirAsia X shares worth up to RM1.66 each
• Reality check on Asean Economic Community, is it rather ambitious?
• 3 parties said to be in talks to take over Luster
• Japanese corporates might be eyeing Malaysia as operational hub
• MHTC eyes RM630mil revenue for medical tourism
• Ringgit falls to 1-yr low at 3.2010 versus US dollar

Copyright © 1995-2013 Star Publications (M) Bhd (Co No 10894-D) - Investor Relations