Japanese brewer Kirin to buy Temasek’s 14.7% stake in Fraser & Neave for S$1.34 billion

26 Jul 2010

Kirin Holdings, Japan's largest brewer, today said that it agreed to buy Singapore sovereign wealth fund Temasek Holdings 14.7 per cent stake in Fraser & Neave, maker of Tiger beer for S$1.34 billion ($974 million).

Kirin Holdings will buy 205.5 million Fraser & Neave shares from Seletar Investments Pte, a wholly owned subsidiary of Temasek Holdings for S$1.34 billion ($974 million), said the Tokyo-based Kirin.

Singapore-based Fraser and Neave group operates in the foods and beverages, property, printing, and publishing  sector. Its food and beverage division operates beer brewing, glass manufacturing, dairy products, juice drinks, pasteurised tea, and ice cream.

It is the largest beverage company in Singapore and Malaysia and is best known for its Tiger beer and F&N brand bottled soft drinks.

"This transaction will provide Kirin with opportunities to expand its business base in the fast-growing Southeast Asian market, and Kirin plans to work closely with F&N to enhance the enterprise value of both companies," Kirin said in a statement.

In 2009, Kirin acquired a 43.25-per cent stake in the beer unit of Fillipino food and beverage giant San Miguel Corp for $1.26 billion (See: Japan's Kirin buys 43-per cent stake in San Miguel) and had taken over Australia's Lion Nathan, which jointly produces and markets Heineken brands.