Heineken takes major step towards sealing Asia Pacific Breweries deal20 September 2012
Dutch brewer Heineken has edged closer towards securing the acquisition of Asia Pacific Breweries after agreeing a truce with rival ThaiBev.
Thai billionaire Charoen Sirivadhanabhakdi said that ThaiBev and TCC Assets will vote in favour of Heineken’s $6.3 billion offer for Asia Pacific Breweries at an Extraordinary General Meeting later this month.
In return, Heineken will not make an offer for shares in Asia Pacific Breweries’ parent company Fraser & Neave. The firm will buy an 8.6% stake in Asia Pacific Breweries owned by Sirivadhanabhakdi’s son-in-law through his company Kindest Place Group.
The path is now clear for Heineken to finally secure the full acquisition of Asia Pacific Breweries.
"This is settlement talk, to prevent any further escalation of the fight for F&N or APB, which will cost more for both parties if it goes on," Goh Han Peng, an analyst at DMG & Partners Securities told Reuters.
"Heineken would henceforth be able to complete consolidating APB. ThaiBev would get the balance of the F&N business and give it to a platform or distribution channel to regional markets in Southeast Asia."
Last week, Sirivadhanabhakdi launched a $7.2 billion offer for Fraser & Neave which had put Heineken’s protracted deal for Asia Pacific Breweries on the rocks.
ThaiBev and TCC Assets own 30.36% of Fraser & Neave - above the 30% threshold which triggers a mandatory offer for the Singapore-based firm's beverage, publishing and property portfolio.
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