Fraser and Neave

[winston]

Not vested. From CIMB:-

Assets are attractive in parts. Over 80% of F&N’s consumer-related businesses rest in its stakes in APB and F&N Berhad. Its brewery business, largely operated through APB, has built up a regional presence over the years but is running into cost pressures from its expansion into Vietnam. Price caps for dairy products in Malaysia are also straining profit margins.

We believe their values have been captured in F&N’s share price. Properties, which make up over 70% of F&N’s assets, appear undervalued in the conglomerate structure, in our opinion. We value its property arm at S$4.20-4.50/share.

• Breaking up is hard to do. F&N’s management is unlikely to break up the group’s current structure in the near term, in our opinion. We believe there are few benefits from privatising F&N Berhad at current valuations while Heineken and F&N unlikely to relinquish their stakes in APB easily.

While much value in its property assets appears trapped within the conglomerate structure, a re-listing of Fraser Centrepoint might not be timely, given current uncertain markets. There is also no need for the group to raise funds through a separate listing of the property arm. We also rule out the possibility of straight sales of the F&B and property divisions.

• Resume coverage with Underperform and target price of S$4.91. Our target price is pegged at a 20% conglomerate discount to our sum-of-the-parts valuation of S$6.14. A narrowing of the discount in the near term could come from evidence of streamlining initiatives such as the divestment of non-core assets (e.g. printing business) and the redeployment of capital to revamp the F&B brand name.

[LenaHuat]

That's what I had earlier commented abt : "F&N has become a property player".

[ehchang]

yes, this is the present, but the future is hard to say.
If they want to be a property player, the former ceo, who is a property guy, will not leave because of different perception on where the company is heading.
I also think (baseless) that they want to have more than F&B and property arm.

[kennynah]

funny hor...i;ve always associated f&n with beverage/soft drinks business...

[winston]

I also think (baseless) that they want to have more than F&B and property arm.

I think you could be right..

Hmmm.... not so politically correct for Temasek to own Singtel

[kennynah]

... not so politically correct for Temasek to own Singtel

hahah....this belongs to "laugh laugh/smile smile" thread....

[winston]

Mai Siao Siao. He only knows Telecom. Pick up Singtel and then M1 and then Starhub.. Wah lao

[kennynah]

starhub already in their bag...thru st telemedia...singtel...relative lah..... 2nd son maybe gone...but that puppet ceo will tow the line any day...so, that's in the bag too...

m1...mountain is that small bank.... easy easy job lah...

what is difficult for the leecorporation in singapore? nothing...there's no concept of resistance one...it is futile to resist...hahaha..

[millionairemind]

DJ Fraser & Neave Priced S$250M 5-Year Bond At 4.55% - Sources

SINGAPORE (Dow Jones)--Singapore-based conglomerate Fraser & Neave Ltd. (F99.SG) has priced S$250 million ($184 million) in five-year fixed-rate bonds, two people familiar with the matter said Friday.

The bonds will pay a 4.55% coupon and were priced at par earlier this week, the people said.

Oversea-Chinese Banking Corp. was the sole bookrunner for the deal.

[LenaHuat]

4.55% coupon looks higher than CapitaLand's recent syndicated loans :

The loan will cost the joint venture about 150 basis points above the Singapore dollar swap offer rate at the outset, and the margin will scale down to 135 basis points when the project achieves an undisclosed sales target, said CapitaLand Chief Financial Officer Olivier Lim.

Lena : According to BizTimes, the 3-month SOR on 17 July was 1.14446. Trust but please verify my remark