Fraser & Neave (F & N)

(05-07-2013, 10:41 AM)CityFarmer Wrote:

(05-07-2013, 09:03 AM)psolhawk Wrote: Further update on the proposed restructuring of the property arm of F&N

Credit: Todayonline http://www.todayonline.com/business/thai...n-s2b-reit

Thai billionaire Charoen said to plan S$2b REIT

Yes, a good news indeed, but no announcement from SGXWeb yet, so I assume it stays as un-confirmed news...

IMO, the real value to be unlocked should be from F&B segment...

How to unlock value from F&B? List as a separate entity?

IMO, the value of their F&B is potential strong growth... With Coke previously removed as a road block to the expansion of their Drinks biz and now Tiger, for beer biz (road block by Heineken), I'm cautiously optimistic of a Growth story for their F&B... It's going to boil down to execution and hopefully, no new road block by new owner (since he also has other biz in F&B)...

As for Properties, REITs is the fastest way to unlock value. Nothing new for them as they already have the experience of FCT & FCOT. It's just a matter of time for them to do a Hospitality REIT.

I think for them its more for shifting debt into the reit
thaibev is like over 90% geared... they really need to either
raise cash
or
move their debt somewhere

my view, not sure correct or not

(05-07-2013, 11:13 AM)KopiKat Wrote:

(05-07-2013, 10:41 AM)CityFarmer Wrote:

(05-07-2013, 09:03 AM)psolhawk Wrote: Further update on the proposed restructuring of the property arm of F&N

Credit: Todayonline http://www.todayonline.com/business/thai...n-s2b-reit

Thai billionaire Charoen said to plan S$2b REIT

Yes, a good news indeed, but no announcement from SGXWeb yet, so I assume it stays as un-confirmed news...

IMO, the real value to be unlocked should be from F&B segment...

How to unlock value from F&B? List as a separate entity?

IMO, the value of their F&B is potential strong growth... With Coke previously removed as a road block to the expansion of their Drinks biz and now Tiger, for beer biz (road block by Heineken), I'm cautiously optimistic of a Growth story for their F&B... It's going to boil down to execution and hopefully, no new road block by new owner (since he also has other biz in F&B)...

As for Properties, REITs is the fastest way to unlock value. Nothing new for them as they already have the experience of FCT & FCOT. It's just a matter of time for them to do a Hospitality REIT.

ThaiBev is interested in F&N F&B biz. Centrepoint will be separated. Basically F&N is being broken up

But depending on the structure, it is uncertain whether ThaiBev will benefit. F&N shareholders most likely will win.

(05-07-2013, 01:29 PM)specuvestor Wrote:

(05-07-2013, 11:13 AM)KopiKat Wrote:

(05-07-2013, 10:41 AM)CityFarmer Wrote:

(05-07-2013, 09:03 AM)psolhawk Wrote: Further update on the proposed restructuring of the property arm of F&N

Credit: Todayonline http://www.todayonline.com/business/thai...n-s2b-reit

Thai billionaire Charoen said to plan S$2b REIT

Yes, a good news indeed, but no announcement from SGXWeb yet, so I assume it stays as un-confirmed news...

IMO, the real value to be unlocked should be from F&B segment...

How to unlock value from F&B? List as a separate entity?

IMO, the value of their F&B is potential strong growth... With Coke previously removed as a road block to the expansion of their Drinks biz and now Tiger, for beer biz (road block by Heineken), I'm cautiously optimistic of a Growth story for their F&B... It's going to boil down to execution and hopefully, no new road block by new owner (since he also has other biz in F&B)...

As for Properties, REITs is the fastest way to unlock value. Nothing new for them as they already have the experience of FCT & FCOT. It's just a matter of time for them to do a Hospitality REIT.

ThaiBev is interested in F&N F&B biz. Centrepoint will be separated. Basically F&N is being broken up

But depending on the structure, it is uncertain whether ThaiBev will benefit. F&N shareholders most likely will win.

One key problem I see is ThaiBev is already heavily geared. They'll need to issue debts / equities to fund this. I was thinking a possible scenario would be for ThaiBev to sell their F&B biz to F&N and perhaps swop it for the Property biz. This will result in the 2 companies with no overlap and focussed in a different biz. Perhaps, can rename ThaiBev as Frasers Properties as it'd sound more international.... Alternatively, if they don't buy over the property biz, they can become an Investment Holding co. for our dear Thai tycoon to slowly inject his other non-listed biz in ....

(05-07-2013, 01:50 PM)KopiKat Wrote:

(05-07-2013, 01:29 PM)specuvestor Wrote:

(05-07-2013, 11:13 AM)KopiKat Wrote:

(05-07-2013, 10:41 AM)CityFarmer Wrote:

(05-07-2013, 09:03 AM)psolhawk Wrote: Further update on the proposed restructuring of the property arm of F&N

Credit: Todayonline http://www.todayonline.com/business/thai...n-s2b-reit

Thai billionaire Charoen said to plan S$2b REIT

Yes, a good news indeed, but no announcement from SGXWeb yet, so I assume it stays as un-confirmed news...

IMO, the real value to be unlocked should be from F&B segment...

How to unlock value from F&B? List as a separate entity?

IMO, the value of their F&B is potential strong growth... With Coke previously removed as a road block to the expansion of their Drinks biz and now Tiger, for beer biz (road block by Heineken), I'm cautiously optimistic of a Growth story for their F&B... It's going to boil down to execution and hopefully, no new road block by new owner (since he also has other biz in F&B)...

As for Properties, REITs is the fastest way to unlock value. Nothing new for them as they already have the experience of FCT & FCOT. It's just a matter of time for them to do a Hospitality REIT.

ThaiBev is interested in F&N F&B biz. Centrepoint will be separated. Basically F&N is being broken up

But depending on the structure, it is uncertain whether ThaiBev will benefit. F&N shareholders most likely will win.

One key problem I see is ThaiBev is already heavily geared. They'll need to issue debts / equities to fund this. I was thinking a possible scenario would be for ThaiBev to sell their F&B biz to F&N and perhaps swop it for the Property biz. This will result in the 2 companies with no overlap and focussed in a different biz. Perhaps, can rename ThaiBev as Frasers Properties as it'd sound more international.... Alternatively, if they don't buy over the property biz, they can become an Investment Holding co. for our dear Thai tycoon to slowly inject his other non-listed biz in ....

For all these suggested deal are interested party transaction, I think it needs minority approval. I think the Thai towkay will place his F&N to friendly party to meet the 10% free float requirement, which these friendly party will vote for these IPTs.

Yes IPT so TCC has to plan properly.

Most likely the listed entity will become property (including Thai) and REITS holding company while Thai Bev take the F&B. Question is how will thaibev structure look like? Will they continue to hold FNN shares to benefit TCC cash-flow?

(05-07-2013, 02:14 PM)specuvestor Wrote: Yes IPT so TCC has to plan properly.

Most likely the listed entity will become property (including Thai) and REITS holding company while Thai Bev take the F&B. Question is how will thaibev structure look like? Will they continue to hold FNN shares to benefit TCC cash-flow?

My hypothesis is that F&N will be used as the Holdco for Charoen's property interests (F&N and TCC). The F&B portfolio will be separately listed. Consumer staples counters are commanding pretty rich valuations these days (PE upwards of 20 on average), hence this multiple expansion upon listing will be a good way to unlock value for existing shareholders.

As F&N gets broken up, Thaibev may concurrently "swap" its property interests in F&N for greater shareholdings of the F&B business. Proper valuation will have to be done for these arm's length transaction. This will address Thaibev's gearing concerns

I think they are interested in F&N as a pure F&B play. All the rest will be up for sale. In the end, minority shareholders will be hanging onto approximately total 10+%. for a long long time. No doubt share price will not move much for years. Just look at the price action these days to understand the scenario.

(05-07-2013, 02:30 PM)rokcradle Wrote:

(05-07-2013, 02:14 PM)specuvestor Wrote: Yes IPT so TCC has to plan properly.

Most likely the listed entity will become property (including Thai) and REITS holding company while Thai Bev take the F&B. Question is how will thaibev structure look like? Will they continue to hold FNN shares to benefit TCC cash-flow?

My hypothesis is that F&N will be used as the Holdco for Charoen's property interests (F&N and TCC). The F&B portfolio will be separately listed. Consumer staples counters are commanding pretty rich valuations these days (PE upwards of 20 on average), hence this multiple expansion upon listing will be a good way to unlock value for existing shareholders.

As F&N gets broken up, Thaibev may concurrently "swap" its property interests in F&N for greater shareholdings of the F&B business. Proper valuation will have to be done for these arm's length transaction. This will address Thaibev's gearing concerns

"The business activities and operations of the Non-Beer division are mainly conducted through a listed entity in Malaysia, Fraser & Neave Holdings Bhd ("F&N HB" or "F&N Holdings Bhd")".

F&N Singapore controls 56.05% of F&N Malaysia.

In other word, F&N's f&b business is already listed. I don't know it can further unlock f&b value.

Correct but there is holding company discount for FNN Singapore shareholders and there are some unlisted part which include the Myanmar biz which Kirin was willing to pay a total of S$2.7b IIRC