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According to Reuters, Thai Beverage (ThaiBev), Southeast Asia's largest brewer, has announced plans to shift its focus exclusively to food and beverage.

The company will divest its real estate assets in a share swap deal with other companies owned by Thai investor Charoen Sirivadhanabhakdi.

Under the agreement, ThaiBev will transfer its 28.8% stake in Singapore’s Frasers Property – valued at approximately $1.6 billion – to property firm TCC Assets. In exchange, TCC Assets will transfer shares in Singapore food and beverage firm Fraser and Neave (F&N) to ThaiBev, increasing its ownership in F&N from about 28% to nearly 70% upon completion of the deal.

ThaiBev said: "Streamlining the company's focus towards a pure-play beverage and food business by exiting the property business and increasing its exposure to non-alcoholic beverages and dairy could result in a potential re-rating in line with pure-play beverage and food peers".

The deal values F&N at around S$5.2 billion ($3.9 billion) and Frasers Property at approximately S$7.4 billion.

ThaiBev will seek shareholder approval for the transaction at an extraordinary general meeting.

Top image: © Thai Beverage

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