Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Companies  >>   Thai Tycoon plans to raise his own loans for F&N acquisition
NEWS UPDATES Asean Affairs   29 January 2013  

Thai Tycoon plans to raise his own loans for F&N acquisition


 Thai tycoon Charoen Sirivadhanabhakdi is expected to seek additional borrowing on his own to finance the takeover of Singapore's Fraser and Neave, as his flagship business Thai Beverage risks a rating downgrade should its debt level escalate further.

A source close to the matter said Charoen was looking for new loans from Singaporean banks to finance the takeover, which could amount to 13.75 billion Singapore dollars (US$11.1 billion) if all shares are bought.

To date, ThaiBev, which started to build up its stake in F&N in July, has borrowed S$3.3 billion through syndication. It now holds 29 per cent in F&N, while TCC Assets - a non-listed business arm of Charoen - bought the remaining 11 per cent. As Overseas Union Enterprise has dropped out of the race and the final result of the race will be announced on February 4, Charoen will have to launch an unconditional offer for all shares of F&N.

Standard & Poor's Ratings Services, which recently assigned a negative outlook to ThaiBev's rating (BBB), yesterday announced that once the deal is closed, it would evaluate the credit implications for ThaiBev.

"In particular, we will assess how the integration of the different operations of F&N could influence ThaiBev's business and financial risk profiles. We will also seek more clarity about ThaiBev's plan to reduce its debt over the next 24 months, its dividend policy, and the likelihood of further debt-funded acquisitions," it said in a statement.

ThaiBev's leverage increased substantially after the debt-funded acquisition, with debt to debt plus equity spiking from 27.2 per cent at the end of 2011 to 62.8 per cent in September 2012.

With net worth of more than US$6 billion, Charoen is expected not to face any problems raising new loans. By raising the bid for F&N, the tycoon also demonstrated determination to grow his local business through F&N's network in the Asia-Pacific region.

F&N's network will be the tool to grow Thailand's largest food-and-beverage and property conglomerate in Southeast Asia and beyond. The move reflects Charoen's strategic expansion into food-and-beverage and property markets of Southeast Asia, which is booming in comparison with other regions.

An industrial source said yesterday that Charoen would acquire all F&N businesses, to be operated separately by his food-and-beverage and property empires.

According to a key message given earlier by Thapana Sirivadhanabhakdi, a son of Charoen and president and chief executive officer of ThaiBev, the acquisition of F&N is part of the company's strategy to expand its food-and-beverage and property empires in Southeast Asia and beyond by utilising F&N's rich distribution and business networks. At the same time, the company could bring F&N's products into Thailand to take new market opportunities and support its diversified portfolio.

"Becoming the major shareholder of F&N is a great opportunity, as it will contribute to synergy of both parties, and ThaiBev will gain exposure to the knowledge and experience of F&N's management team, which has keen expertise in the overall Asean region," Thapana said in the statement.

F&N has a history of more than 80 years in Southeast Asia and has three core businesses, namely food and beverase, properties, and publishing and printing. Its food-and-beverage business operates 31 breweries in 15 countries in Asia and the Pacific. As the largest beverage company in Singapore and Malaysia, F&N also owns a portfolio of renowned brands across multiple product classes and enjoys leadership positions in key markets. As such, ThaiBev believes F&N is highly complementary to its existing capabilities and will increase the group's profile in the food and beverage sector.

"Upon completion of the transaction, ThaiBev expects to expand its international coverage immediately. This is in line with the group's plans to grow its profile outside its predominantly domestic market focus, and allow it to tap a range of attractive demographics and consumer spending trends," Thapana said. *US$1=1.2 Singapore dollars  

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    29 January 2013   
Subsribe Now !
• Survey shows economic volatility on top of Asean CEOs' concerns Subcribe: Asean Affairs Global Magazine
• ASEAN Tourism Forum in Vientiane Report Asean Affairs Premium
• Malaysia new auto sales on a high
• Vietnam, EU trade talks begin
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• FDI jumps by 23% into Indonesia
• Malaysian insurance sector on a high
• Malaysian Property prices to keep rising  
• Thai Tycoon plans to raise his own loans for F&N acquisition  
Asean Analysis              29 January  2013      Advertise Your Brand
• Asean Analysis- January 29, 2013  
• Asean Weekly- January 24, 2013 Sponsor Our Events

Asean Stock Watch      29  January  2013    

• Asean Stock Watch- January 29, 2013
• Asean Stock Watch- January 28, 2013

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand