ThaiBev to shed property assets in share swap
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ThaiBev to shed property assets in share swap

Chang brewer will expand Fraser and Neave holdings to focus entirely on food and beverages

Thai Beverage, Southeast Asia’s biggest brewer, plans to divest its real estate assets and become a pure-play drinks and food company in a share swap with other companies held by its owner, billionaire Charoen Sirivadhanabhakdi.

Under the deal, ThaiBev, the owner of brands such as Chang beer and Grand Royal whisky, will transfer its 28.8% stake in Singapore-based Frasers Property Ltd (FPL), worth roughly US$1.6 billion based on the negotiated price, to the property firm TCC Assets controlled by the Sirivadhanabhakdi family.

In return, TCC Assets will transfer shares worth roughly the same amount in the Singapore food and drinks company Fraser and Neave (F&N). ThaiBev’s ownership of F&N will jump to just under 70% from around 28% upon completion of the deal.

The proposed share swap aims to streamline the nature of the businesses and the family’s shareholding structure and will have no impact on operations, according to an internal memo circulated to staff of Frasers Property Thailand (FPT), a SET-listed developer and a subsidiary of FPL.

“Streamlining the company’s focus towards a pure-play beverage and food business by exiting the property business and increasing its exposure to non-alcoholic beverages and dairy could result in a potential re-rating in line with pure-play beverage and food peers,” Singapore-listed ThaiBev said in a statement.

“Through the share swap, the major shareholders are confident that FPL can grow comfortably while F&N will be TCC’s main focus,” a Thai property industry source who asked not to be named told the Bangkok Post.

The deal values F&N at around S$3.9 billion and Frasers Property at about S$7.4 billion.

ThaiBev said it would seek approval from its shareholders for the proposed share swap at an extraordinary general meeting.

DBS is acting as ThaiBev’s financial adviser.

Another source said that Panote Sirivadhanabhakdi, the CEO of FPL and the youngest son of Mr Charoen, sent an internal memo on Thursday morning to all staff at Frasers Property Thailand.

He wrote that there were no complications with the transaction. The swap aims to streamline the nature of each business and will have no impact on the operations of FPL and its subsidiaries, he added.

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