SINGAPORE (Reuters) - Shares in Fraser & Neave Ltd (F&N) (FRNM.SI) rose nearly 5 percent after Thai billionaire Charoen Sirivadhanabhakdi launched a $7.2 billion offer to buy out other shareholders of the Singapore conglomerate, potentially derailing Heineken NV’s (HEIN.AS) bid to take full control of F&N’s prized beer business.
F&N shares rose to a record high of S$8.94 on Thursday and traded above the offer price of S$8.88 per share in a flat market .FTSTI. The shares were suspended for trading earlier in the day.
Charoen’s move to take over the Singapore drinks-and-property group before a key F&N shareholders vote has raised doubts on whether the sale of F&N’s 40 percent stake in Asia Pacific Breweries Ltd (APB) APBB.SI is a done deal as predicted by industry watchers just a week ago.
Thailand’s third-richest man, who controls 30.36 percent of F&N, needs a simple majority of votes at the meeting on Sept 28 to overturn the deal that F&N’s (FRNM.SI) board and the Dutch brewer reached on Aug 18.
That means Heineken needs to rally shareholders with a collective interest exceeding Charoen’s stake to push through its $6.3 billion purchase of all the remaining shares in the Tiger beer maker, including F&N’s APB stake.
Reporting by Anshuman Daga; Editing by Kevin Lim