Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Companies  >>   ThaiBev gives up bid for APB, concedes to Heineken
NEWS UPDATES Asean Affairs    20 September  2012

ThaiBev gives up bid for APB, concedes to Heineken


Thai tycoon Charoen Sirivadhanabhakdi has apparently made a key decision in expanding his overseas interests: letting go of Asia Pacific Breweries (APB) and getting the maximum possible benefit out of Singapore's Fraser & Neave (F&N).

Thai Beverage Plc and TCC Assets Ltd (TCCA) - two firms majority-owned by Charoen and his wife, Khunying Wanna - yesterday announced that at the upcoming meeting of F&N shareholders they would vote for the sale of APB to Heineken. This would cover the direct and indirect interests of F&N in the brewer.

In return for this promise, "Heineken irrevocably undertakes not to make a general offer for shares in F&N under the Singapore Code on take-overs and mergers," according to the joint statement filed at the Singapore Exchange.

The combined stake of ThaiBev and TCCA in F&N reached 30.36 per cent last Thursday. TCCA is launching an offer to buy all remaining shares in F&N on the open market. Other major shareholders of F&N include Kirin International Holdings, Japan's second largest brewer, which has so far avoided the takeover wrangling.

F&N holds 40 per cent of APB via direct and indirect interests. APB is the maker of Tiger beer, with breweries in 14 countries. Heineken's stake in APB is about the same.

Charoen's decision ends the months-long competition between ThaiBev - the maker of Chang beer and Thailand’s largest brewer by volume - and Heineken, the world's third largest brewer.

Thapana Sirivadhanabhakdi, chief executive officer of ThaiBev and eldest son of Charoen, said earlier in an interview with The Nation that F&N is a piece in the puzzle of Charoen's strategy to expand his business overseas. With strong cash flow, management know-how and the solid regional distribution network of F&N, Charoen's businesses in Thailand can be jump-started into a global expansion. Under these strategies, Charoen is eyeing not only Asia, but also opportunities throughout the world.

Last week, TCCA's offer for all shares in F&N not held by ThaiBev affirmed Charoen's dire need for a larger presence in the Singapore food-and-drink company.

For its 29-per-cent stake in F&B, ThaiBev spent about 3.9 billion Singapore dollars (approximately 98 billion baht or US$3.17 billion). Moody's Investors Service, which has puts ThaiBev's rating on review for a possible downgrade, said yesterday that the F&N shareholder resolution on September 28 would play a critical role in its assessment of ThaiBev's future credit profile.

Charoen's group stands to reap a huge gain from the decision to end fighting with Heineken. Kindest Place Groups - a unit of Charoen's liquor empire - bought 8.6 per cent of the shares in APB for below S$50 apiece, but its bid to compete against Heineken forced the Dutch brewer to raise its offer for APB shares to S$53 per share. In effect, Charoen stands to book billions in disposable gain. And now, he can refocus on putting F&N into the main jigsaw.

His firm - Thai Charoen Corporation (TCC) Group - has interests ranging from insurance to property and consumer products, as well as ThaiBev. TCC Group holds 70 per cent of Thailand-listed Berli Jucker, which has operations in trading and consumer products. The conglomerate also controls unlisted property investor and developer TCC Land. There is an insurance business under TCC Capital, and a sugar operation.

F&N itself is a sprawling empire of property, beer, soft drinks and bookshops. DMG & Partners Securities noted earlier that "in many ways, F&N offers a solid regional platform for ThaiBev to accelerate its regionalisation strategy in both its brewery and non-brewery businesses. Cross-selling opportunities between Thailand and overseas markets in beer and non-alcoholic businesses could create meaningful revenue synergies for the enlarged group."

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




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

Today's  Stories    20 September 2012  Subsribe Now !
• Asean mulls 'new political channels' to ... Subcribe: Asean Affairs Global Magazine
• First Asean human rights declaration's draft... Asean Affairs Premium

• Asean Exchanges launched

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Laos to sell Xayaburi electricity to Cambodia...
• Vietnam extends Indonesia rice sale agreement
 • ThaiBev gives up bid for APB, concedes to

Asean Analysis              20 September 2012
Advertise Your Brand
• Asean Analysis- September 20, 2012  
• Asean Weekly- September 14, 2012 Sponsor Our Events

Asean Stock Watch     19 September 2012 

• Asean Stock Watch- September 19, 2012 p

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


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 © 2006-2019 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand