F&N: Charoen’s offer not compelling
Fraser & Neave Ltd plans to say that Thai billionaire Charoen Sirivadhanabhakdi's US$7.3 billion takeover offer is not compelling and undervalues some of its assets, according to people with knowledge of the matter.
- Published: 10/10/2012 at 11:52 AM
- Newspaper section: breakingnews
F&N's board is likely to say on Thursday the S$8.88 (US$7.21) a share bid is fair, based on recommendations from adviser JPMorgan Chase & Co, said the people, who asked not to be named because the matter is private. Still, F&N is likely to add that the bid undervalues its properties and its brewing assets in Myanmar, according to three people.
Charoen, through Thai Beverage Plc (THBEV) and TCC Assets Ltd, in September offered S$9 billion for the 70% of Singapore- based F&N he did not already own. F&N shareholders last month agreed to sell the company's 40% stake in Tiger beer maker Asia Pacific Breweries Ltd (APB) for S$5.6 billion to Heineken NV (HEIA).
Jennifer Yu, a spokeswoman for F&N, declined to comment. A JPMorgan official declined to comment on the firm's recommendation.
TCC Assets owns or has commitments for 33.5% of F&N's shares, according to an statement to Singapore's stock exchange on Wednesday.
On Oct 8, F&N said it recorded a “revaluation surplus” of about S$498 million on some of its properties, including The Centrepoint shopping mall on Singapore's Orchard Road. The company is still reviewing the value of real estate under development and its property management business, it said.
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