By Robert van den Oever and Sam Holmes
AMSTERDAM--Heineken Holding N.V. (HEIO.AE) said Friday it has
reached an agreement with the board of its joint-venture partner
Fraser & Neave Ltd. (F99.SG) of Singapore to buy its shares in
Asia Pacific Breweries Ltd. (A46.SG) for S$5.1 billion.
The Dutch brewer will buy the shares in APB, the maker of Tiger
Beer, held directly and indirectly by F&N. If the deal closes,
Heineken will own 81.56% of APB shares.
The deal is subject to F&N's shareholders agreeing to the
deal and regulatory approvals. F&N also said Friday that its
board has recommended its shareholders to vote in favor of the
deal.
Singapore-listed Thai Beverage PCL (Y92.SG) and Kirin Holdings
Co. (2503.TO) together have a 39.1% stake in F&N. Their votes
will be a crucial factor for the offer to be successful.
If the deal closes, Heineken will make a mandatory offer for all
shares of APB it doesn't already own. ThaBev owns directly a stake
of 8% in APB. The free float of APB's Singapore listing is around
9%.
The decision allows Heineken to expand further in Southeast Asia
and boost its global market share. Because of lackluster sales in
Europe and North America, major brewers are increasingly looking to
expand in Asia, competing with local brands that have dominated the
beer industry for decades. China has been the focus of most
brewers' expansion, but the rapidly expanding economies of
southeast Asia are also receiving more attention.
APB is one of the fastest-growing and most profitable beer
companies in Asia.
Write to Robert van den Oever at robert.vandenoever@dowjones.com
and Sam Holmes at samuel.holmes@dowjones.com
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