Heineken wins support of Thai billionaire for Tiger bid
Analyst said a major hurdle for
Heineken's bid for Asia Pacific Breweries had been cleared
Dutch brewer Heineken has ended the
stand-off over control of the maker of Tiger beer, by garnering the support of a
Thai billionaire.
Charoen Sirivadhanabhakdi's ThaiBev and TCC Assets have agreed to back the sale of Singapore-based Fraser and Neave's (F&N) stake in Asia Pacific Breweries (APB) to Heineken.
Heineken has offered 5.6bn Singapore dollars ($4.6bn; £2.8bn).
Analysts said chances of Heineken's bid being accepted by F&N were now higher.
The news sent Heineken's shares as much as 5.4% higher in morning trading.
"Thai tycoon Charoen has backed down and handed Heineken a free passage to takeover APB," said Justin Harper from IG Markets in Singapore in a note to clients.
"While he pursues the acquisition of its joint parent company Fraser & Neave."
Last week, Mr Sirivadhanabhakdi, whose companies own about 30% of F&N, made an offer to acquire the rest for almost S$9bn.
It was the latest escalation after months of a bidding war for the assets.
In a joint statement Tuesday, the companies said Heineken will not make an offer for shares in F&N.
Analysts said the two parties appeared to have reached a settlement to prevent the deals costing more for both.
"It could be a win-win for everyone involved. Heineken gets its prized asset of APB, the Thais get a good price which will help fund their takeover of F&N," said Mr Harper.
The board of F&N has already given its approval for the Heineken bid. The shareholders will meet to vote on 28 September
Charoen Sirivadhanabhakdi's ThaiBev and TCC Assets have agreed to back the sale of Singapore-based Fraser and Neave's (F&N) stake in Asia Pacific Breweries (APB) to Heineken.
Heineken has offered 5.6bn Singapore dollars ($4.6bn; £2.8bn).
Analysts said chances of Heineken's bid being accepted by F&N were now higher.
The news sent Heineken's shares as much as 5.4% higher in morning trading.
"Thai tycoon Charoen has backed down and handed Heineken a free passage to takeover APB," said Justin Harper from IG Markets in Singapore in a note to clients.
"While he pursues the acquisition of its joint parent company Fraser & Neave."
Last week, Mr Sirivadhanabhakdi, whose companies own about 30% of F&N, made an offer to acquire the rest for almost S$9bn.
It was the latest escalation after months of a bidding war for the assets.
In a joint statement Tuesday, the companies said Heineken will not make an offer for shares in F&N.
Analysts said the two parties appeared to have reached a settlement to prevent the deals costing more for both.
"It could be a win-win for everyone involved. Heineken gets its prized asset of APB, the Thais get a good price which will help fund their takeover of F&N," said Mr Harper.
The board of F&N has already given its approval for the Heineken bid. The shareholders will meet to vote on 28 September
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