After a brief struggle for control, Heineken will buy Fraser & Neave's (F&N) 39.7 per cent share in Asia Pacific Brewery (APB) for S$5.6 billion. Following a recent counter bid for the stake from ThaiBev, F&N has agreed to hand over its share to Heineken, after the brewer was forced to increase its original bid from S$50 to S$53 per share.
When the deal goes through, Heineken will hold a 81.6 per cent stake in APB and gain control of APB’s business. While the the transaction is still subject to shareholder approval, Heineken CEO Jean-François van Boxmeer said the deal is “excellent value for shareholders”. Last Friday, Heineken shares dropped amid concerns that the Dutch brewer was going to pay too much for APB.
The total cash consideration to F&N will be S$5.6 billion, an increase of S$307 million on Heineken's previous offer made on 20 July. The brewer has said that it will not increase its final offer and expects the transaction to be completed by 15 December. It has been confirmed that Singapore will remain Heineken's Asian headquarters.
The brewer announced its first half results yesterday reporting an organic growth of 4.5 per cent in revenue with a surge of 30 per cent in reported net profit, hitting €783 million. Group beer volume rose 3.3 per cent with increases in four out of five regions and volumes of Heineken grew by 6 per cent. (23 Aug)
© 2012 - ESM: European Supermarket
