Heineken Announces $4.1 bn Bid for Singapore Brewer


Singapore, Jul 21 (IANS): Dutch beer giant Heineken announced a 5.1 billion Singapore dollars ($4.1 billion) bid Friday for Asia Pacific Breweries (APB), a Singapore-based brewer that owns the Tiger beer brand.

Heineken is offering to pay 50 Singapore dollars a share for the entire 40 percent stake of Fraser & Neave (F&N) in APB. This represents a premium of 8 Singapore dollars over the closing price of APB Thursday, or 45 percent over the one-month volume weighted average price of APB shares, reported Xinhua.

Once the deal is agreed, Heineken is also expected to make an offer for the rest of the shares in APB not owned by Heineken for a maximum consideration of 2.4 billion Singapore dollars ($1.9 billion), thus bringing the total cost of the takeover to 7.5 billion Singapore dollars ($6 billion).

It has also offered 163 million Singapore dollars for the interest of F&N in the non-APB assets held by Asia Pacific Investment Private Limited, a 50-50 joint venture between Heineken and F&N.

The offer will be open to F&N for acceptance until July 27, F&N said.

Heineken currently has a 41.9 percent stake in APB. Japanese brewer Kirin Holdings owns 14.7 percent in F&N.

The Dutch brewer said the offer is in line with its strategy to "expand its presence in emerging markets" and follows deals in recent years that have included acquisitions in Mexico, Brazil and Africa, as well as partnership with United Breweries in India.

The offer will strengthen Heineken's presence in "some of the world's most exciting and dynamic economies with fast-growing populations" and important markets including Cambodia, China, Indonesia, Malaysia, New Zealand, Papua New Guinea, Singapore, Thailand and Vietnam, it said.

Trading in the shares of APB and F&N was halted at the Singapore Exchange on Friday after Heineken announced the bid.

  

Top Stories


Leave a Comment

Title: Heineken Announces $4.1 bn Bid for Singapore Brewer



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.