Heineken could face Asia Pacific Breweries bidding war08 August 2012
Heineken faces a battle for Asia Pacific Breweries after Kindest Place Group offered Fraser & Neave $55 a share for its stake in the Tiger beer brewer.
The offer represents a 10% premium on Heineken’s $50 a share bid and comes after Lee Hsien Yang, Fraser & Neave’s chairman said on Friday that the Dutch brewer’s $4.1 billion move "represents an attractive premium, and the sale of Asia Pacific Breweries allows us to immediately unlock substantial value in the beer business."
Kindest Place Group is headed up by the son-in-law of Thai Beverage owner Charoen Sirivadhanabhakdi. Last month.,Thai Bev invested around $2.2 billion to take a 24% stake in Fraser & Neave.
Heineken described the offer from Kindest Place as non-comparable on Wednesday and said that it is continuing negotiations with Fraser & Neave.
“We are convinced that our bid is richer and offers more value to shareholders,” said a Heineken spokesman.
Roger Tan, SIAS Research’s chief executive told Reuters that Heineken may flex its financial muscle to clinch Asia Pacific Breweries.
“If push comes to shove, Heineken would have to raise its offer,” he said.
Heineken has a market value of £25.7 billion - significantly higher than the $8.29 billion Chang beer brewer Thai Beverage.
Should Heineken take control of Asia Pacific Breweries, the firm will increase its share of revenue generated in Asia from 6% to 15%.
Fraser & Neave said it will "review and evaluate the offer" but added that "shareholders should note that there is no certainty at the time of this announcement that any transaction or agreement will be entered into in respect of the offer."
Shares in Asia Pacific Breweries surged to a record $41.94 on the news.
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