Fraser and Neave

[winston]

not vested

Fraser & Neave’s management have reiterated that they are not looking to sell their APB business, even if a bid comes in at premium multiples (APB is currently at 23x trailing P/E), over out phone conversation.

We do not see a sale on the cards in the near-term, and we see growth normalising this year.

Maintain Neutral, target price S$6.75.

Source: CIMB

[winston]

not vested

F&N Q2 profit fall 37.1%, pays 6cts/shr dividend By Carine Lee

Fraser and Neave (F&N) on Friday posted a 37.1 per cent decrease in year on year net profit to $85.46 million for the second fiscal quarter ended March 31, 2012.

Excluding fair value adjustment of investment properties and exceptional items, net profit decreased 21.1 per cent to $103.51 million from $131.20 million a year ago.

Exceptional loss includes a $31 million provisional charge for the group's investment in Jiangsu Dafuhao, following the termination of its planned divestment.

Turnover for the quarter decreased 6.7 per cent to $1.23 billion from a year ago, with the soft drinks, dairies and development property segments recording lower revenue.


Source: Business Times

[winston]

not vested

OCBC, Singapore's second-biggest bank, and its insurance unit have received a bid for their combined 18.2 percent stake in the beverages-to-property firm Fraser and Neave.

The stake has a market value of about $1.6 billion


Source: Reuters

[winston]

not vested

The break-up of the F&N Group (F&N and associate ASIA PACIFIC BREWERIES) may finally be set in motion, thereby fully realizing
shareholder value.

• Yesterday, OCBC and subsidiary GREAT EASTERN informed that they have been approached for their combined 18.20% / 7.92%
stakes in F&N and APB respectively.

• Note KIRIN HOLDINGS of Japan (maker of name sake beer and other f&b products) presently owns a just-under 15% stake, first
bought from Temasek 2 years ago. (A mandatory offer will be triggered should Kirin buy over OCBC / GEH’s combined stake.)

• This in turn would have implications for APB, where Heineken of Holland has a direct 9.5% stake on top of its half share in the 64.8%
stake held through Asia Pacific Investments, ie effectively 41.9%, which compares with F&N’s effective 39.7% total interest (hence the
thin liquidity in APB shares).

• All this would help explain the strength of F&N shares, which have been scaling new heights in recent weeks.

• Indeed, this has gone on since Nov’10, after Kirin first bought a 14.7% stake from Temasek. The high reached then was $6.80, surpassing the high in May’07 of $6.40. This was followed by $6.89 in Jan’12; $6.95 in Mar’12 and $7.95 intraday high yesterday.

• We maintain our BUY call, despite the stock at a new high:− Kirin is cash rich and yen is strong, reason for Japanese groups eagerness to acquire overseas assets;

− Heineken is no pushover, especially given all the woes in Europe, and not just declining per capita beer consumption.

• May the bidding war result in the best possible valuation for the F&N Group. (Note how F&N, with significant property interests, has
confounded many with its stock trading at a substantial premium to NAV of $4.91 as at end Mar’12.)

Source: Lim & Tan

http://www.remisiers.org/cms_images/res ... -daily.pdf

[winston]

Not vested

We believe a logical buyer for the F&N/APB stakes would be Kirin Holdings. Recall that in July 2010, Kirin had bought over Temasek’s 14.7% stake in F&N for S$1.34b, or the equivalent of $6.50 per F&N share.

The rationale then was simple: get exposure to the fast-growing consumer markets in Asia to offset stagnant growth in its home market.
Kirin’s existing business is in the beverage sector, in both alcoholic and non-alcoholic drinks.

F&N’s F&B portfolio, comprising soft drinks and dairies under F&N Berhad and breweries under Asia Pacific Breweries, would thus be a synergistic fit with its core businesses, while the property division could eventually be hived off at some point.

Buying over the stake in F&N from OCBC/GE would make Kirin the single-largest shareholder in F&N with its enlarged stake of 33%.

It would also give it effective control over 48% of the outstanding shares in APB, 40% indirectly through F&N’s stake in APB and an additional 7.9% that it buys directly from OCBC/GE. This would give it a higher shareholding in APB than Heineken NV, currently the largest shareholder with a 42% stake.

Any buyer, however, would have to offer a decent premium for OCBC/GE to consider divesting their stakes.

Assuming the buyer is indeed Kirin, it would have to contend with possible counter-offers from the more deep-pocketed Heineken Group, as well as to line up financing for a mandatory takeover of F&N once its stake crossed 30%.

Source: DMG

http://www.remisiers.org/cms_images/res ... atters.pdf

[winston]

not vested

Thai Beverage PCL said on Wednesday it was in talks to buy stakes in beverage-to-property conglomerate Fraser and Neave and Asia Pacific Breweries from Oversea-Chinese Banking Corp .

Source: Reuters

[winston]

not vested. The assumptions below, looks a bit too rich to me but what do I know ?

Fraser & Neave - A three-way tussle beneficial for shareholders

The latest to emerge as the potential buyer for OCBC and GE’s stake is the TCC Group, parent of Thailand’s biggest beer maker Thai Beverage. If so, we see a three-way tussle for FNN’s F&B assets to emerge, with premium values set along the way – a positive for FNN shareholders.

We are currently on research blackout.

But assuming a
1) 26x PE for APB (c.S$40 a share) and
2) a 24x PE for FNH,

we estimate SOP valuation for FNN to be S$9.20-9.30.

Source: CIMB

[winston]

not vested

Singapore watchdog calls for F&N auction

AFP - Singapore's stock market watchdog has called for an auction to resolve a protracted takeover battle between Indonesian and Thai tycoons for local conglomerate Fraser and Neave (F&N).

The Securities Industry Council (SIC) said in a statement issued late Tuesday that investors needed certainty and gave both contenders until Sunday to make fresh offers for F&N, a beverage, property and publishing group.

If a stalemate remains, a daily bidding process will start on Monday until one party gives up.

F&N became a takeover target in September after selling off its most prized asset, Tiger Beer maker Asia Pacific Breweries, to Dutch giant Heineken.

A takeover contest between Thai billionaire Charoen Sirivadhanabhakdi and Indonesian tycoon Mochtar Riady has dragged on since then, with both parties seeking several extensions of deadlines to table their final offers.

"The council considers that the company's shareholders should be provided with certainty to make their investment decisions in respect to the competing offers," the SIC said in its statement.

Singapore's Business Times newspaper said the call for an auction was unprecedented and follows a process used in Britain.

Charoen's TCC Assets was the first to train its sights on F&N, offering Sg$8.7 billion ($7.10 billion), or Sg$8.88 a share, for shares in the company that it does not already own.

However, its bid was stymied when property firm Overseas Union Enterprise (OUE), controlled by Indonesia's Lippo Group, tabled a higher bid of Sg$13.1 billion, translating to Sg$9.08 a share, in mid-November.

Lippo's founder is Indonesian tycoon Mochtar Riady, and his son Stephen is OUE's executive chairman.

F&N shareholders have reacted coolly to both bids, holding out for more money after an adviser gave a higher valuation than OUE's offer.

"All traders have seen are two rival foreign companies use F&N as a plaything to raise their own profile without any serious conviction to acquire the property and drinks conglomerate," said Jason Hughes, head of premium client management for IG Markets Singapore.

"The low-ball offers come across as disingenuous and many are surprised a third party hasn't sneaked in and stolen their thunder," he said in a market commentary.

http://www.france24.com/en/20130116-sin ... fn-auction

[behappyalways]

The battle is over: Victorious F&N triumphs over shrewd MEHL
http://sbr.com.sg/food-beverage/news/ba ... hrewd-mehl

[behappyalways]

F&N rolls out $70m investment to boost capacity in Malaysia
http://sbr.com.sg/food-beverage/news/fn ... n-malaysia