Thai billionaire Charoen upsets Heinken’s $6 bn bid for Tiger Beer maker

Thai billionaire Charoen Sirivadhanabhakdi has put a spanner into Heinken's $6 billion bid for full control of Tiger Beer maker Asia Pacific Breweries (APB) by offering a higher price for the APB stake held directly by Singapore conglomerate Fraser and Neave (F&N).

Kindest Place, a firm owned by a son-in-law of Charoen yesterday offered S$55 ($44.34) for the 7.3 per cent stake in APB held directly by F&N, which is 10 per cent higher than the S$50 per share offered by Heineken for the 40 per cent stake held directly and indirectly by F&N.

Last week, F&N agreed to sell its entire 40 per cent direct and indirect stake in APB to Heineken for S$5.1 billion ($4.1 billion). (See: F&N to sell stake in Tiger brewer to Heineken for $4.1 bn)

Once F&N's shareholders vote on the deal, the Amsterdam-based brewer, which currently holds 41.9 per cent in APB, would make a mandatory general offer at the same price for all of the remaining shares of APB for $1.9 billion, taking the total deal value to $7 billion.

The voting pattern of Charoen-owned Thai Beverage and Japanese brewer Kirin Holdings is crucial since both companies hold 24.1 per cent and 15 per cent respectively in F&N.

Kindest Place also holds a 7.9 per cent in APB, which it had acquired last month for S$45 a share from Oversea-Chinese Banking Corp and its insurance unit Great Eastern Holdings, and if its current offer for F&N's 7.3 per cent stake succeeds, it will then hold 15.2 per cent directly in APB, and may not sell its stake to Heniken's offer.