Heineken step closer to winning Tiger beer

Billionaire Charoen Sirivadhanabhakdi’s Thai Beverage and TCC Assets said they would vote in favour of the sale of Singapore conglomerate Fraser and Neave’s stake in Asia Pacific Breweries to Heineken.

In return, Heineken, the world’s third-largest brewer, will not make an offer for shares in F&N.

The deal between the Thais, the largest F&N shareholders with a near 31 per cent stake, and the Dutch brewer ended a two-month stand-off involving competing offers for control of APB.

After the agreement, Heineken also said it would buy an 8.6 per cent direct stake in APB owned by Sirivadhanabhakdi’s son-in-law through his company Kindest Place Group.

Heineken, already sharing control of APB through an 81-year-old venture with F&N, now seems set to take full control of the brewer and protect its turf in Asia’s fast-growing beer market.

“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,” said Goh Han Peng, an analyst at DMG & Partners Securities in Singapore.

“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.”