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ThaiBev Says It Will Vote Against F&N Capital Reduction Plan

Thai Beverage Pcl (THBEV) and TCC Assets Ltd., owned by Thai billionaire Charoen Sirivadhanabhakdi, said they will vote this week against Fraser & Neave Ltd. (FNN)’s plan to distribute S$4 billion ($3.2 billion) to shareholders.

The two companies will vote against F&N’s cash distribution proposal at the shareholders meeting on Sept. 28, ThaiBev said today in a statement to the Singapore Stock Exchange. Shareholders in the meeting will also vote on Dutch brewer Heineken NV (HEIA)’s offer to buy F&N’s stake in Asia Pacific Breweries Ltd. (APB), or APB.

F&N said last month it plans to distribute to shareholders about S$4 billion of the proceeds from the sale of APB through capital reduction of one for every three F&N shares. The proposal requires the approval of 75 percent of shareholders to proceed. F&N recommended that holders accept Heineken’s increased S$53-per-share bid for the 40 percent stake in APB in August. ThaiBev and TCC Assets have an aggregate stake of about 30.66 percent in F&N, ThaiBev said in the statement today.

Charoen’s ThaiBev and TCC said earlier this month that they will back Heineken’s S$5.6 billion offer for F&N’s beer business, which may pave the way for the Thai billionaire to take control of F&N’s other assets. The Dutch brewer agreed not to make a competing offer for F&N’s other assets.

TCC Assets, controlled by 68-year-old Charoen, made an S$9 billion bid for the 70 percent of F&N he doesn’t control on Sept. 13, offering S$8.88 a share for the conglomerate.

It is the largest takeover announced by a Thai company in at least 10 years, according to data compiled by Bloomberg. A successful bid by Charoen’s companies would add fast-growing soft drinks, dairy and real-estate businesses to their portfolio.

To contact the reporter on this story: Winnie Zhu in Singapore at wzhu4@bloomberg.net

To contact the editor responsible for this story: Linus Chua at lchua@bloomberg.net

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