Fraser and Neave, Limited (F&N) has entered into sale and purchase agreements with Heineken, to sell its entire interest in Asia Pacific Breweries Limited (APB) and other assets in Asia Pacific Investment for a consideration of $5.59bn.
This consideration values F&N’s 32.4% effective interest, held through a 50-50 joint venture APIPL between F&N and Heineken at $4.43bn.
The other assets held by APIPL were valued at $163m. F&N’s 7.3% direct interest in APB is valued at $994m. The $5.59bn consideration is a $307m or a 6.0% increase over Heineken’s previous offer.
Mr Lee Hsien Yang, chairman of F&N, said, “Heineken’s new offer of $53 per share is for our entire interest in APB, while Kindest Place Groups Limited’s offer, although marginally higher than Heineken’s on a per share basis, is only for our direct 7.3% stake.
"The sale of F&N’s stakes in APB in its entirety to Heineken at the improved price would better maximise overall returns for F&N shareholders. If F&N shareholders approve the sale, all remaining APB shareholders will also stand to benefit from the higher mandatory offer price of $53 per share.”
The transaction remains subject to sale conditions which include the receipt of regulatory approvals and the approval of F&N’s shareholders at an EGM to be convened.