Heineken offer sets up battle over Asia Pacific Breweries22 July 2012
Heineken has offered joint venture partner Fraser & Neave $4.07 billion to take full control of Asia Pacific Breweries.
The bid comes after ThaiBev agreed to take a 22% stake in venture capital firm Fraser & Neave. Simultaneously, Kindest Place Groups, which is run by ThaiBev's son-in-law, had an offer to take an 8.4% stake in Heineken, Tiger beer and Bintang brewer Asia Pacific Breweries.
Heineken currently has a 50% stake in Asia Pacific Breweries and has hinted that it will withdraw from the joint venture should it be unsuccessful in taking full control.
"Heineken is confident that when completed, this offer will also generate long-term financial and strategic value for its shareholders, given the attractive growth potential of South-East Asia and the company's strong position within the international premium beer segment," said the firm in a statement.
"If Heineken is denied the ability to extend its offer to all APB shareholders it will review all options available to protect its commercial interests."
"We believe that our offer for the APB shares is highly attractive and provides excellent value to F&N and APB shareholders," added Jean-François van Boxmeer, Heineken's chairman and chief executive.
Heineken has bid SKD45 per share for Asia Pacific Breweries while Kindest Place Group has tabled an offer of SKD50 per share.
Heineken is Asia Pacific Breweries' largest brand, accounting for 30% of volumes.
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