Reuters: Global Markets: APB trading above Heineken's offer after surprise Thai bid

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APB trading above Heineken's offer after surprise Thai bid Aug 8th 2012, 02:24 SINGAPORE | Tue Aug 7, 2012 10:24pm EDT SINGAPORE (Reuters) - Shares of Asia Pacific Breweries Ltd (APBB.SI) jumped to a record in Singapore, valuing it above Heineken's offer, after a group linked to Thailand's second-richest man challenged the Dutch brewer's $6 billion bid for the maker of Tiger Beer. A company owned by Thai billionaire Charoen Sirivadhanabhakdi's son-in-law made a surprise counter offer of S$55 a share on Tuesday to buy Fraser and Neave's (FRNM.SI) 7.3 percent direct stake in APB, S$5 above Heineken's bid. Heineken (HEIN.AS), the world's third-largest brewer, now has to decide whether to raise its bid or risk losing control of one of Asia's fastest-growing brewers. "We see this offer as a move to block the sale of APB to Heineken at S$50 by persuading F&N's board to reconsider," said CIMB Research in a note. "Heineken may be forced to come up with a higher offer, potentially triggering a bidding war." By 0135 GMT, APB rose 5.9 percent to S$51.70, with 170,000 shares traded. This included a block trade of 75,000 shares done at S$52, just shy of the day's high of S$52.20. F&N shares gained 1.5 percent to S$8.40. Companies are vying for control over APB due to its dominant position in attractive high-growth emerging markets such as Vietnam and Singapore. The Amsterdam-based brewer put a brave face on the situation late on Tuesday, saying its bid was better than the Thai offer. "We are convinced that our bid is richer and offers more value to shareholders," said a Heineken spokesman. The Thai companies, Thai Beverage PCL (TBEV.SI) and Kindest Place, had already put Heineken on the back foot last month when they paid $3 billion to take stakes in F&N and APB. Charoen can also try and block the full sale of APB to Heineken by voting against the deal through ThaiBev, which he controls. ThaiBev, the maker of Chang beer, is F&N's biggest shareholder with about 24 percent. Japan's Kirin Holdings (2503.T) is the second-largest with a 15 percent stake. If the latest Thai offer succeeds, it will control about 16 percent of APB, having already agreed to buy 8.6 percent of the beer maker from Singapore's Oversea-Chinese Banking Corp (OCBC.SI) and its affiliated groups at a lower price of S$45 a share. (Reporting by Charmian Kok; Editing by Saeed Azhar and Ryan Woo) Link this Share this Digg this Email Reprints

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