Thai billionaire Sirivadhanabhakdi outbids Indonesia’s Overseas Union for F&N
19 Jan 2013
Thai billionaire Charoen Sirivadhanabhakdi finally increased his offer for Singapore-based conglomerate Fraser and Neave Ltd (F&N) to S$9.55 per share, trumping a S$9.08 rival bid from a consortium led by Overseas Union Enterprise (OUE), an Indonesia-based hotel and property company.
The sweetened offer, which values the property and drinks conglomerate at nearly S$13.8 billion ($11.3 billion), trumps a S$13.1 billion ($10.7 billion) bid by OUE, controlled by Indonesia's Lippo Group.
Sirivadhanabhakdi, who through his companies Thai Beverage and TCC Assets, holds 33.6 per cent stake in F&N, had, in September 2012, offered to buy the remaining 66.4 per cent of F&N for S$8.8 billion, valuing the Singapore group at around S$12.8 billion.
Charoen yesterday acquired an additional 90.8 million shares, or a 6.3 per cent stake in F&N, at S$9.55 each, raising his stake to 33.9 per cent.
Japanese brewer Kirin Holdings, Asia's largest beverage company, which holds a 14.8 per cent stake in F&N, has backed OUE's offer, and said that it will tender its stake for S$1.9 billion ($1.6 billion). If OUE's bid is successful, Kirin plans to buy back F&N's food and beverage operations for about S$2.7 billion.
Although F&N's board has not recommended OUE's counter-bid to shareholders, it has agreed to pay a break fee of as much as S$50 million, an indication that it prefers OUE's superior offer.