Kindest Place enters battle for Asia Pacific Breweries

Published:  8 Aug at 9 AM

Heineken may have to revise its bid for a controlling stake in Asia Pacific Breweries after Kindest Place, a Thai firm, said it is prepared to pay S$55 per share in return for a 7.3 per cent stake in the Tiger Beer producer.

The stake is currently held by Fraser and Neave which has a 40 per cent direct and indirect share of the brewer. The price being offered by Kindest Place is 10 per cent higher than the offer on the table from Heineken.

DMG & Partners Securities analyst Goh Han Peng said that latest bid meant that Heineken’s offer is likely to fail. F&N’s board had already accepted the offer but it is unlikely that acceptance will now make it past the required shareholder vote. Peng said Heineken will have to up its offer to at least S$55 per share to see off its new rival and probably have to offer closer to S$60 per share.

The ownership of Asia Pacific Breweries, one of the regions largest beer producers, is complicated.

Heineken presently has a 9.5 per cent direct stake in the company and owns 42 per cent of the brewery. F&N has a 40 per cent share of the company and Kirin, the Japanese brewer, has a 15 per cent share in F&N. If the bid now being made by Kindest Place were to be accepted, the company would boost its holding in APB to 15 per cent.