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Charoen Said To Seek Additional 10% Stake In F&N From Funds
Perspective | 21 December 2012
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Thai billionaire Charoen Sirivadhanabhakdi tried to buy a stake of about 10 percent in Fraser & Neave (F&N) for $9.60 a share from at least two funds as he competes for control of the Singapore company, said three people with knowledge of the matter.

The deal was not completed, the people said, asking not to be identified as the information is private. Charoen, who already owns about 35 percent of F&N and needs more than 50 percent by 2 January to prevent his takeover bid from failing, enlisted Citigroup in an offer to buy 144 million F&N shares, they said.

Charoen’s attempt indicates he may seek to top an offer for F&N by Overseas Union Enterprise (OUE). The billionaire has extended a deadline for his $8.88 per share bid for the company four times, while OUE offered to pay $9.08 on 15 November. F&N, with a market value of $13.8 billion, has traded above both bids since 19 October.

Citigroup contacted institutional investors about the latest attempted stake purchase starting 14 December, two of the people said.

Shares of F&N rose to a high of $9.87 on 17 December in Singapore, and headed for a record close at $9.67. The stock has surged 55 percent this year. Thai Beverage rose as much as 5.2 percent to $0.405.

‘Not Compelling’
Charoen failed to win support for his $8.88 a share bid from F&N’s board, which has said an independent adviser found that offer “not compelling, though fair.”

OUE has enlisted Kirin Holdings Co, F&N’s second-largest shareholder, in its bid. If its offer succeeds, OUE would get the company’s property business and Kirin, Japan’s largest drinks maker, would take the food and beverage unit.

Both takeover offers are conditional on the buyers getting more than 50 percent of F&N. Documents related to the bids show that without crossing that threshold, either buyer would have to return their shares to selling shareholders. OUE’s offer expires 3 January.

Vichate Tantiwanich, a spokesman for Charoen’s Thai Beverage, the largest shareholder in F&N, and Richard Tesvich, a Hong Kong-based spokesman for Citigroup, declined to comment on the attempted stake purchase.

Charoen, 68, has a net worth of $8.5 billion, according to data compiled and calculated through the Bloomberg Billionaires Index. His unlisted business, TCC Group, has a real estate unit. Thai Beverage, which sells the Chang brand of beer, gets almost all its revenue from its home market.

Fraser & Neave  1.730 -- --   
Business: [FY18 Turnover] Dairies (60%), beverages (25.4%), printing & publishing (14.6%).

Insight: Apr-19, 1H19 revenue inched 1.9% to $931.8m underp... Read More
Thai Beverage Public Co  0.895 -0.010 -1.10%   
Business: [FY18 Turnover] Spirits (46.1%), beer (41.1%), non-alcoholic beverages (7%), food (5.8%).

Insight: May-19, 1H19 revenue rose 26.1% to THB142.6b mainl... Read More
OUE  1.500 -0.010 -0.66%   
Business: An integrated property developer with real estate portfolio located in prime locations in the US & Asia. [FY18 Turnover] Inv ppties (43.7%), hospitality (37.7%), development ppties (10.5%), healthcare (4.6%), fund management & others (3.5%).

Insight: May-19, 1Q19 revenue rose 1.2% due to higher contr... Read More

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