Beer battle gets tougher
Heineken and Thai Beverage, both in the run to acquire Singapore’s Tiger Beer maker Asia Pacific Breweries (APB), are locked in a bidding brawl, awaiting a crucial shareholders’ vote of Fraser & Neave, the controlling stake holder of APB.
Heineken, the world’s third-biggest brewer, has been seeking control of APB to gain a larger slice of the fast growing Asian beer market, but was challenged by Thai billionaire Charoen Sirivadhanabhakdi, owner of Thailand’s largest brewer Thai Beverage, in a bidding contest that prompted Heineken last week to raise its offer for APB to 53 Singapore dollars a share from 50, or a total of $6.35 billion for a controlling 81.6 per cent stake.
Thai Beverage, which is also Fraser & Neave’s largest shareholder with 26.4 per cent, separately offered to buy Fraser & Neave’s direct 7.3 per cent stake in APB at 55 Singapore dollars per share, which would give Sirivadhanabhakdi the control over the Tiger Beer maker.
The result of the bidding battle so far ways that shares of all involved companies – Heineken, APB, Fraser & Neave and Thai Beverage – have reached new highs over the last days.
In fact it is now Thai Beverage in its role as Fraser & Neave’s largest shareholder to decide whether it accepts or resists Heineken’s latest bid, a position which in any case will bear a favourable result for Sirivadhanabhakdi.
However, analyst say that the Thai party will use its position to counter Heineken with even a higher bid, as it has the financial muscle to do so.
APB with its strong Tiger Beer brand is the sixth-largest brewer in Asia-Pacific region, behind San Miguel Corp of the Philippines on the top and Thai Beverage ranked fourth.
See Inside Investor’s earlier story on the beer battle here.
Heineken and Thai Beverage, both in the run to acquire Singapore's Tiger Beer maker Asia Pacific Breweries (APB), are locked in a bidding brawl, awaiting a crucial shareholders' vote of Fraser & Neave, the controlling stake holder of APB. Heineken, the world's third-biggest brewer, has been seeking control of APB to gain a larger slice of the fast growing Asian beer market, but was challenged by Thai billionaire Charoen Sirivadhanabhakdi, owner of Thailand's largest brewer Thai Beverage, in a bidding contest that prompted Heineken last week to raise its offer for APB to 53 Singapore dollars a share from 50,...
Heineken and Thai Beverage, both in the run to acquire Singapore’s Tiger Beer maker Asia Pacific Breweries (APB), are locked in a bidding brawl, awaiting a crucial shareholders’ vote of Fraser & Neave, the controlling stake holder of APB.
Heineken, the world’s third-biggest brewer, has been seeking control of APB to gain a larger slice of the fast growing Asian beer market, but was challenged by Thai billionaire Charoen Sirivadhanabhakdi, owner of Thailand’s largest brewer Thai Beverage, in a bidding contest that prompted Heineken last week to raise its offer for APB to 53 Singapore dollars a share from 50, or a total of $6.35 billion for a controlling 81.6 per cent stake.
Thai Beverage, which is also Fraser & Neave’s largest shareholder with 26.4 per cent, separately offered to buy Fraser & Neave’s direct 7.3 per cent stake in APB at 55 Singapore dollars per share, which would give Sirivadhanabhakdi the control over the Tiger Beer maker.
The result of the bidding battle so far ways that shares of all involved companies – Heineken, APB, Fraser & Neave and Thai Beverage – have reached new highs over the last days.
In fact it is now Thai Beverage in its role as Fraser & Neave’s largest shareholder to decide whether it accepts or resists Heineken’s latest bid, a position which in any case will bear a favourable result for Sirivadhanabhakdi.
However, analyst say that the Thai party will use its position to counter Heineken with even a higher bid, as it has the financial muscle to do so.
APB with its strong Tiger Beer brand is the sixth-largest brewer in Asia-Pacific region, behind San Miguel Corp of the Philippines on the top and Thai Beverage ranked fourth.
See Inside Investor’s earlier story on the beer battle here.
