Thai Bev Says “Party Acting in Concert” Exploring F&N Bid

Thai Beverage Pcl (THBEV) said it’s cooperating with an entity that may bid for Fraser & Neave (FNH) Ltd., potentially creating a hurdle in Heineken NV’s (HEIA) plan to take over an Asian brewer. F&N rose to the highest since at least 1984.

“A party acting in concert” with the Thai brewer is exploring the possibility of an offer for F&N, said Thai Beverage, controlled by billionaire Charoen Sirivadhanabhakdi, in a statement to Singapore’s stock exchange today.

Heineken will need approval from F&N shareholders for its S$5.4 billion ($4.4 billion) offer for the Singapore-based company’s 40 percent stake in Tiger beer maker Asia Pacific Breweries Ltd. (APB) this month. ThaiBev already has a 29 percent stake in F&N, according to data compiled by Bloomberg, and any controlling shareholders would be able to influence the deal. After selling the brewing stake, F&N will still own businesses ranging from soft drinks to serviced apartment buildings.

The potential bidder is probably one of Charoen’s companies, said Goh Han Peng, analyst at DMG & Partners Research Pte in Singapore. Goh said it could also be a brewer or developer interested in F&N’s real estate operations.

“Anything close to a 50 percent stake would allow them to block Heineken,” he said.

Fraser & Neave shares rose 1.3 percent to S$8.66 at the close in Singapore, the highest since at least January 1984. Vichate Tantiwanich, a spokesman for ThaiBev, in a text message in response to questions declined to name the party the company is working with.

Shareholder Meeting

“We have noted ThaiBev’s statement,” said Heineken spokesman John Clarke in an e-mailed statement. “Heineken is not in a position to comment on what they may or may not do in the future.” The brewer’s “focus” remains on the Sept. 28 F&N meeting when shareholders will vote on the APB deal, he said. Heineken shares fell 0.2 percent to 43.245 euros as of 12:19 p.m. in Amsterdam trading today, set for the lowest in more than three weeks.

Fraser & Neave got about 30 percent of its 2011 revenue of S$6.3 billion from its property division, about 12 percent from soft drinks and 17 percent from dairies, according to data compiled by Bloomberg. Charoen’s unlisted business TCC Group has a real estate arm and Thai Beverage sells non-alcoholic drinks in addition to beer and spirits.

“There is no certainty that an offer for F&N will materialize,” ThaiBev said in its statement. The brewer said it’s not seeking funding for a general offer for F&N, and it’s instead getting refinancing proposals for a loan taken to finance an earlier investment in the Singapore company.

Seeking Control

Heineken, the world’s third-biggest brewer, in August raised its offer for a controlling stake in APB to S$53 a share from S$50. The Dutch brewer has sought full control of APB as it attempts to protect its hold over a key emerging-markets business and as brewing assets in high-growth economies are in short supply after a decade of consolidation in the industry.

Kindest Place Groups Ltd., controlled by Charoen’s son-in- law, has an 8.6 percent stake in APB, according to data compiled by Bloomberg.

APB, set up in 1931 as a joint venture between F&N and Heineken, has rights to brew Bintang beer in Indonesia, Anchor in China, Southeast Asia and Sri Lanka, and Heineken from China to New Zealand.

To contact the reporter on this story: Linus Chua in Singapore at lchua@bloomberg.net

To contact the editor responsible for this story: Stephanie Wong at swong139@bloomberg.net

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ThaiBev Says Party It’s Acting in Concert With Exploring F&N Bid

Munshi Ahmed/Bloomberg

After selling the brewing stake, the Singaporean company will still own businesses ranging from soft drinks to serviced apartment buildings.

After selling the brewing stake, the Singaporean company will still own businesses ranging from soft drinks to serviced apartment buildings. Photographer: Munshi Ahmed/Bloomberg