Temasek Holdings Said to Sell APB Brewer Stake to Heineken

Temasek Holdings Pte, Singapore’s state-owned investment company, sold its stake in Asia Pacific Breweries Ltd. to Heineken NV, according to two people with knowledge of the matter.

Temasek sold its stake of about 1.4 percent to Amsterdam-based brewer Heineken for S$53 a share, said one of the people, who asked not to be identified because the transaction hasn’t been publicly announced.

Heineken, which already owns 42 percent of Singapore-based APB, offered to buy Fraser & Neave Ltd.’s 40 percent stake in the company for S$53 a share to prevent a company connected to a Thai billionaire from disrupting the Dutch brewer’s control. F&N’s board advised shareholders to accept the offer, which values the stake at about S$5.6 billion ($4.5 billion), it said in a statement Aug. 18. Heineken had previously offered S$50 a share for the brewer of Tiger beer.

Heineken’s shares rose as much as 1.8 percent to 44.64 euros and were up 1.1 percent at 4:22 p.m. in Amsterdam. Reuters reported the stake sale earlier today.

Heineken wants full ownership of APB, which it has controlled via a joint venture with F&N since 1931, to protect its sales and distribution network in the emerging markets of southeast Asia. It made an offer after Thai billionaire Charoen Sirivadhanabhakdi and a company controlled by his son-in-law bought stakes in both APB and F&N.

Heineken’s offer for F&N’s stake is subject to approval of shareholders at an extraordinary general meeting, after which it will make a mandatory general offer for the remaining shares, which would have included Temasek’s.

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