Sep 25, 2012

Singapore - Singapore regulator rejects FN request for higher Thai offer

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SINGAPORE – Singapore's takeover regulator rejected a request by Fraser and Neave Ltd (F&N) seeking a higher offer from a company linked to Thailand's third-richest man for all the shares of the drinks-and-property conglomerate.

Thai billionaire Charoen Sirivadhanabhakdi, through TCC Assets Ltd, launched a US$7.2 billion offer this month to buy out other shareholders of F&N at a price of S$8.88 a share.

F&N's board had said it will pay out S$4 billion ($3.3 billion) to shareholders following the takeover through a capital reduction. F&N plans to cancel one for every three shares held by all shareholders and pay out S$8.50 for each canceled share.

As such, F&N sought a ruling from Singapore's Securities Industry Council on whether the Thais were required to raise their offer price of S$8.88 per share to make up for the 38-cent difference on the canceled share.

The regulator ruled on Friday that the Thais did not have to raise the offer price, F&N said in a statement on Monday.

F&N noted TCC had said, in its takeover offer, that it reserved the right to reduce its offer price if F&N returned more money to shareholders via a further capital reduction or a dividend.

The Thais launched the takeover bid for F&N on September 13, ahead of a key F&N shareholder meeting on September 28 to vote whether the Singapore group should sell its 40 percent stake in Asia Pacific Breweries Ltd (APB) to Heineken NV.

Last week, Charoen's Thai Beverage PCL and TCC, collectively F&N's biggest shareholder, said they would vote in favor of the sale to Heineken.

Reuters


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