SINGAPORE: Dutch beer giant Heineken on Wednesday moved one step closer to a
US$4.6 billion takeover of top Asian brewer APB when it gained the backing of a
Thai rival ahead of a vote on the issue.
Thai Beverage (ThaiBev) and TCC
Assets, both controlled by tycoon Charoen Sirivadhanabhakdi, said in a joint
statement with Heineken that they will support the Dutch firm's bid to gain
control of Asia-Pacific Breweries.
Heineken in turn promised not to
make a counter-offer for APB's parent company Fraser and Neave (F&N), which
the Thais want to take over.
Heineken already owns 42 per cent
of Singapore-based APB and offered S$5.6 billion (US$4.6 billion) for the 40
per cent stake held by F&N, which is 30 per cent controlled by the Thai
firms.
In Wednesday's joint statement to
the Singapore Exchange, Heineken said it "irrevocably undertakes not to
make a general offer" for F&N, in which it currently has no stake.
The Thais' surprise offer last
week to buy all of F&N had cast doubt on Heineken's offer for APB, which is
to be decided at an extraordinary general meeting of F&N shareholders on
September 28.
APB, the crown jewel of F&N,
makes Tiger Beer and other popular brands in Asia, where beer consumption is
rapidly growing as sales taper off in mature markets like Europe, Heineken's
traditional base.
ThaiBev makes Chang Beer and is
also involved in food and non-alcoholic drinks.
According to Forbes business
magazine, Charoen is the third richest person in Thailand with an estimated
fortune of $6.2 billion as of August, with the bulk of his money coming from
his beverage business.
APB, which has breweries in 14
countries including China, reported in August that its revenues for the third
quarter to June rose almost 10 per cent to S$781.33 million from a year ago.
Heineken's bid for control of APB
is seen as part of an attempt to have an edge over other rivals in the
10-member Association of Southeast Asian Nations (ASEAN) market of some 600
million consumers as well as China.
Apart from Tiger and Chang Beer,
San Miguel from the Philippines and Indonesia's Bintang, also owned by APB, are
competing with Heineken, Denmark's Carlsberg and other brands from developed
economies.
Beer consumption in nine ASEAN
countries totalled 6.84 billion litres in 2011, up around 6.2 per cent from
2010, with Vietnam, Thailand and the Philippines leading the market, data from
research firm Euromonitor showed.
-AFP/ac
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