F&N Nov 2012

F&N Malaysia could potentially gain a new owner in the form of Japanese brewer Kirin Holdings Co.

 

In early Nov 2012, a consortium led by OUE, a property concern controlled by Indonesia ’s Lippo Group, made a S$13.1 billion (RM32.78 billion) or S$9.08 per share, takeover offer for F&N Malaysia’s parent F&N Ltd ( Singapore ).

 

The offer by OUE sets the stage for a potential bidding war between the Indonesians and the Thais. But adding weight to OUE’s bidding is support from Kirin , which is F&N Ltd’s other major shareholder.

 

Kirin will agree to accept OUE’s offer without contest, but will subsequently makes a S$2.7 billion offer to acquire F&N Singapore’s F&B business. Kirin holds 14.7% stake in F&N Singapore.

 

F&N Singapore holds a 56.43% stake in F&N Malaysia, which carries out the bulk of the Singapore parent’s F&B business. F&N Malaysia’s market cap (19 Nov 2012) is rm6.99 billion, which values F&N Singapore’s stake in the Malaysian operations at rm3.8 billion.

 

Kirin’s move is significant as it is the first indication of the Japanese group’s intentions since Charoen bought into F&N Singapore in July 2012.

 

Ultimately, however, Kirin ’s entry hinges on whether OUE is successful in its takeover of F&N Singapore. But as F&N Singapore’s current (Nov 2012) largest shareholder with a 35.7% stake, Charoen is unlikely to go down without a fight.