Battle hots up in bid to control Tiger Beer

Heineken’s sweetened offer of $6.35bn (£4bn) to take control of the maker of Tiger Beer throws the spotlight back onto the Thai suitor that launched the beer battle last month.
By The Newsroom
Published 21st Aug 2012, 07:00 BST

Heineken’s S$53 per share offer to take control of Asia Pacific Breweries gained the approval of Singapore conglomerate Fraser & Neave’s board last week. Thai Beverage, F&N’s biggest shareholder, may still challenge the safeguards that the Dutch brewer has secured to win the takeover war.

Companies linked to Thailand’s second-richest man, Charoen Sirivadhanabhakdi, agreed last month to pay S$3.8bn ($3.02bn) to acquire stakes in F&N and its affiliate APB. Fearing it may lose control of a key beer partnership, Heineken launched a counter-bid, which it bumped up on Friday.

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“The matter remains that Thai Beverage (ThaiBev) at 53 will make a nice profit on their stake so maybe that can persuade them to accept, but we will have to wait for the votes,” said Robert-Jan Vos, an analyst at ABN AMRO. “I think the chances have increased that they will be able to complete.”

Heineken secured commitment from the F&N board last week not to solicit, engage in talks or accept any alternative offer or proposal for its interests in APB, significantly boosting its chances of owning the whole of APB.

Heineken also attached a S$55.9m break fee on its offer and set a December 15 deadline, giving the Dutch brewer the option to walk away from the deal if all conditions are not met.

The stage is now set for the casting of the crucial F&N shareholder vote, the date for which is yet to be determined.

Related topics:Thai