F&N may spin off property arm
SINGAPORE - Fraser & Neave Ltd may consider separating its lucrative property arm from its other businesses to create value to shareholders.
- Published: 29/06/2013 at 02:36 PM
- Newspaper section: breakingnews
The 130-year-old conglomerate controlled by Thai liquor and property billionaire Charoen Sirivadhanabhakdi said it would appoint advisers to study the options available to "unlock shareholder value", according to a statement to the Singapore stock exchange.
"This may involve a segregation of its property- related businesses from its non-property related businesses," Singapore-based F&N said.
While F&N is best known to the public for dairy products and juices, its development and commercial property businesses were the biggest contributors to net profit in the three months ended March 31.
Mr Charoen became the company's chairman in February, following his US$10.9-billion takeover of F&N.
The company is exploring a property spinoff at a time when Singapore's government is broadening efforts to curb property speculation.
A new framework effective this week requires that lenders take a borrower's debt into consideration when granting property loans, the monetary authority said in a statement on Friday.
Mr Charoen won control of F&N in January when his offer of S$9.55 a share gained support from a majority of shareholders and edged out a proposal from rival Overseas Union Enterprise Ltd.
Mr Charoen ranks 95th in Bloomberg's Billionaires Index with an estimated net worth of US$10.6 billion.
In a separate filing on Friday, F&N said its proposal to distribute S$4.7 billion in capital to shareholders, amounting to S$3.28 per share, had been approved.
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- Writer: Bloomberg News