Heineken raises bid for Asia Pacific Breweries to $4.5 billion

Heineken NV has raised its offer for the entire stake of its joint-venture partner Fraser & Neave (F&N) in Asia Pacific Breweries Ltd (APB) to S$5.6 billion ($4.5 billion), in order to ensure that Thai tycoon Charoen Sirivadhanabhakdi-controlled Thai Beverage Ltd does not disrupt its takeover plan.

Heineken, the world's third- biggest brewer, which currently holds 41.9 per cent of APB, raised its offer for F&N's nearly 40 per cent stake in APB from S$50 per share to S$53 per share, still S$2 less than the price offered by Thai Beverage for a partial stake in Singapore-listed APB.

Through its 50-per cent holding in Asia Pacific Investment Private Ltd joint venture, Singapore-based conglomerate F&N holds 39.7 per cent in APB, while Heineken holds 42 per cent, and the remaining 18.3 per cent is held minority shareholders.

But, the 81-year-old JV ran into trouble last month after Thai Beverage and other companies linked to Thai tycoon Sirivadhanabhakdi bid for 22 per cent stake in F&N and APB for $3 billion.

A few days later, Heineken responded by offering to buy F&N's entire stake in APB for S$50 ($40) a share or $4.1 billion (S$5.1 billion). (See: Heineken launches $4.1-bn bid for Fraser & Neave's stake in Tiger beer maker)

Singaporean conglomerate Fraser and Neave (F&N) had early this month agreed to sell its entire stake in the Tiger Beer maker to the Amsterdam-based brewer for S$50 a share – a move that surprised analysts, who were expecting F&N to seek as much as S$60 per share.