Asia Pacific Breweries: Thailand firm launches new bid

Beer Asia's beer market is expected to grow robustly in the coming years

Related Stories

Heineken's bid to take control of Asia Pacific Breweries (APB), the maker of Tiger Beer, has taken a surprise twist after a Thai firm, Kindest Place, offered to buy a stake in the brewer.

It has offered S$55 ($44; £28) a share for a 7.3% stake in APB, currently held directly by Fraser and Neave (F&N).

That is 10% higher than Heineken's offer to F&N for its 40% direct and indirect stakes in APB.

F&N's board had accepted Heineken's bid but it requires shareholder approval.

Analysts said that the Dutch brewer may have to pay more if it wants shareholders to vote in its favour.

"With this latest turn of events, Heineken's current offer will fail," said Goh Han Peng, an analyst at DMG & Partners Securities in Singapore.

"It will have to offer more than S$55 per share to outbid the Thai group, possibly S$60 per share."

Battle for control

Asia's beer market is expected to be among the fastest growing in the world in the coming years.

APB, which is one of the largest brewers in the region, is expected to benefit from the growth in the sector.

However, the brewer's current ownership structure is complicated and various stakeholders have been trying to increase their control on the firm.

Heineken currently controls 42% of the brewery and also owns a direct 9.5% stake in APB.

Singapore conglomerate F&N owns a 40% direct and indirect stake in APB. Meanwhile, Japanese brewer Kirin owns almost 15%of F&N.

If accepted, Kindest Place's bid will take its holding in APB to more than 15%.

More on This Story

Related Stories

More Business stories

RSS

Features

  • Alana Saarinen at pianoMum, Dad and Mum

    The girl with three biological parents


  • Polish and British flags alongside British roadsideWar debt

    Does the UK still feel a sense of obligation towards Poles?


  • Islamic State fighters parade in Raqqa, Syria (30 June 2014)Who backs IS?

    Where Islamic State finds support to become a formidable force


  • Bride and groom-to-be photographed underwaterWetted bliss

    Chinese couples told to smile, but please hold your breath


  • A ship is dismantled for scrap in the port city of Chittagong, BangladeshDangerous work

    Bangladesh's ship breakers face economic challenge


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.