Fraser & Neave (F & N)

Suddenly halted just before mkt opens, together with APB but not ThaiBev, OCBC & GEH. Takeover fight coming???

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Nope! Lifted, same SGX Annc as ThaiBev, OCBC & GEH.

(19-07-2012, 09:03 AM)KopiKat Wrote: Suddenly halted just before mkt opens, together with APB but not ThaiBev, OCBC & GEH. Takeover fight coming???

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Nope! Lifted, same SGX Annc as ThaiBev, OCBC & GEH.

I hope APB remains listed, it will be such a pity if it gets privatised

APB is not cheap and very illiquid at S$40.

(19-07-2012, 10:08 AM)freedom Wrote: APB is not cheap and very illiquid at S$40.

opportunity will always come, just like how it used to be less than $10 during the GFC. I like illiquid stock

(19-07-2012, 10:08 AM)freedom Wrote: APB is not cheap and very illiquid at S$40.

Very low free float. From AR2011,

1. Asia Pacific Investment Pte Ltd = 64.8%
2. Heineken International B.V. = 9.49%
3. Fraser and Neave, Limited = 7.26%

Plus the stake to be sold by OCBC & GEH to Kindest Place Groups Limited (controlling shareholders of ThaiBev) = 3.4% (OCBC) + 4.6% (GEH) = 8%

I wonder how ThaiBev is going to pay for their 22% stake in F&N. Their Debts a lot more than their Cash. Massive Rights? Borrow from banks and later sell non-synergistic F&N assets like Property & Publishing for cash to buy APB stake from Kindest (or asset swop) and pay out Special Div to reduce debts? Have to get other F&N shareholder clearance tho'... Interesting soap opera..

(19-07-2012, 10:30 AM)shanrui_91 Wrote:

(19-07-2012, 10:08 AM)freedom Wrote: APB is not cheap and very illiquid at S$40.

opportunity will always come, just like how it used to be less than $10 during the GFC. I like illiquid stock

someone's fortune could be someone else' misfortune.

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(19-07-2012, 10:39 AM)KopiKat Wrote:

(19-07-2012, 10:08 AM)freedom Wrote: APB is not cheap and very illiquid at S$40.

Very low free float. From AR2011,

1. Asia Pacific Investment Pte Ltd = 64.8%
2. Heineken International B.V. = 9.49%
3. Fraser and Neave, Limited = 7.26%

Plus the stake to be sold by OCBC & GEH to Kindest Place Groups Limited (controlling shareholders of ThaiBev) = 3.4% (OCBC) + 4.6% (GEH) = 8%

I wonder how ThaiBev is going to pay for their 22% stake in F&N. Their Debts a lot more than their Cash. Massive Rights? Borrow from banks and later sell non-synergistic F&N assets like Property & Publishing for cash to buy APB stake from Kindest (or asset swop) and pay out Special Div to reduce debts? Have to get other F&N shareholder clearance tho'... Interesting soap opera..

F&N is not that expensive. less than 2 x BV. APB is much more expensive. ThaiBev is traded above 3X BV. If ThaiBev is to buy APB, it probably will not get approval from its shareholders.

I am not sure that ThaiBev can direct the sale of other business of F&N with its only 22% interest although the biggest shareholder of F&N.

Come to think of it, ThaiBev still need to clear this with their shareholders. If I were a ThaiBev shareholder, I'll be wondering whether the hefty premium being paid for F&N is going to be worth it, especially since there'll very likely be a massive Rights / Debts to fund this.

So, let's not get tooo excited... yet!

The deal for ThaiBev shareholders is that it is not buying the more expensive APB, instead, it is buying the cheaper F&N. Cheaper in the sense that ThaiBev is trading higher than F&N in book value. It should be easier to justify to ThaiBev's shareholders to buy F&N than to buy APB.

Trading Halt again, with APB. Becoming a daily event...

(20-07-2012, 08:50 AM)KopiKat Wrote: Trading Halt again, with APB. Becoming a daily event...

http://www.bloomberg.com/news/2012-07-20...ssets.html

S$50/share bid for Tiger before Elephant coming stomping through the door...