Fraser & Neave (F & N)

(29-08-2013, 09:34 AM)CityFarmer Wrote:

(29-08-2013, 09:04 AM)toiletsiao Wrote: hope they got an offer for their printing assets... lol

This is not within my expectation...

IMO, it is difficult to get a buyer, and it is just a small part of the asset, and minor contributor to profit.

Base on AR2012, the numbers of P&P segment

Revenue: 382.3 mil (11% of overall revenue)
PBIT: ONLY 4.1 mil (1% of overall PBIT)
Asset: 397.8 mil (4% of overall asset)

The number is too minor that, in my SOTP, I lumped it together with "Other" as one part...

(vested)

I did jokingly suggested at the beginning of the takeover saga that Popular Hldgs ought to make an offer for this segment... They may find synergy with their Publishing (MCD) & Bookstores (Times). Popular Hldgs FY13 Revenue is only $524Mil, so this "small" segment of F&N is rather massive for Popular Hldgs... With current net cash = $70M, they may need to gear up considerably... Very slim chance unless valuations is closer to $100M...

PS. I don't see any other company halted at the same time

(29-08-2013, 09:52 AM)KopiKat Wrote:

(29-08-2013, 09:34 AM)CityFarmer Wrote:

(29-08-2013, 09:04 AM)toiletsiao Wrote: hope they got an offer for their printing assets... lol

This is not within my expectation...

IMO, it is difficult to get a buyer, and it is just a small part of the asset, and minor contributor to profit.

Base on AR2012, the numbers of P&P segment

Revenue: 382.3 mil (11% of overall revenue)
PBIT: ONLY 4.1 mil (1% of overall PBIT)
Asset: 397.8 mil (4% of overall asset)

The number is too minor that, in my SOTP, I lumped it together with "Other" as one part...

(vested)

I did jokingly suggested at the beginning of the takeover saga that Popular Hldgs ought to make an offer for this segment... They may find synergy with their Publishing (MCD) & Bookstores (Times). Popular Hldgs FY13 Revenue is only $524Mil, so this "small" segment of F&N is rather massive for Popular Hldgs... With current net cash = $70M, they may need to gear up considerably... Very slim chance unless valuations is closer to $100M...

PS. I don't see any other company halted at the same time

I reckon Mr. Towkay might not have time to entertain the offer, even Mr. Chou offers it. There are bigger businesses to deal with, and with limited time...

PS. It might be additional info on the DIS, rather than new corporate action...

(29-08-2013, 10:11 AM)CityFarmer Wrote:

(29-08-2013, 09:52 AM)KopiKat Wrote:

(29-08-2013, 09:34 AM)CityFarmer Wrote:

(29-08-2013, 09:04 AM)toiletsiao Wrote: hope they got an offer for their printing assets... lol

This is not within my expectation...

IMO, it is difficult to get a buyer, and it is just a small part of the asset, and minor contributor to profit.

Base on AR2012, the numbers of P&P segment

Revenue: 382.3 mil (11% of overall revenue)
PBIT: ONLY 4.1 mil (1% of overall PBIT)
Asset: 397.8 mil (4% of overall asset)

The number is too minor that, in my SOTP, I lumped it together with "Other" as one part...

(vested)

I did jokingly suggested at the beginning of the takeover saga that Popular Hldgs ought to make an offer for this segment... They may find synergy with their Publishing (MCD) & Bookstores (Times). Popular Hldgs FY13 Revenue is only $524Mil, so this "small" segment of F&N is rather massive for Popular Hldgs... With current net cash = $70M, they may need to gear up considerably... Very slim chance unless valuations is closer to $100M...

PS. I don't see any other company halted at the same time

I reckon Mr. Towkay might not have time to entertain the offer, even Mr. Chou offers it. There are bigger businesses to deal with, and with limited time...

PS. It might be additional info on the DIS, rather than new corporate action...

Yup... his bankers may be getting nervous with the latest developments...
But, most likely drafting an official clarification to some news reports...

FCL could be traded like UOL instead of Capitaland or City Developments. That would be a great opportunity for minority shareholders to realize the investment.

All guessed wrongly...

POTENTIAL DISPUTE RELATING TO MYANMAR BREWERY LIMITED (MBL)

Fraser and Neave, Limited (the Company) wishes to inform its shareholders that it received yesterday a letter from the lawyers of Myanma Economic Holdings Limited (MEHL), the Companys joint venture partner in Myanmar Brewery Limited (MBL), stating MEHLs intention to issue a notice of arbitration in respect of a potential claim relating to the Companys shares in MBL.

The Company currently holds 55 per cent. of the issued shares of MBL (the MBL Shares) with the remaining 45 per cent. held by MEHL. The Company and MEHL are parties to a joint venture agreement (JVA) relating to MBL, which governs their respective shareholdings in MBL. MEHL had purported to rely on the JVA to give notice to the Company to sell to MEHL or its nominee all of the Companys MBL Shares. The Company maintains that there is no basis for MEHL to give that notice. The Company has engaged lawyers and intends to vigorously resist the claim.

The Company is currently assessing the financial impact of the potential dispute. The Company will make further announcements, as appropriate, to update shareholders.

In the meantime, shareholders of the Company are advised to refrain from taking any action in respect of their shares in the Company which may be prejudicial to their interests, and to exercise caution when dealing with shares in the Company.

(29-08-2013, 04:45 PM)KopiKat Wrote: All guessed wrongly...

POTENTIAL DISPUTE RELATING TO MYANMAR BREWERY LIMITED (MBL)

Fraser and Neave, Limited (the Company) wishes to inform its shareholders that it received yesterday a letter from the lawyers of Myanma Economic Holdings Limited (MEHL), the Companys joint venture partner in Myanmar Brewery Limited (MBL), stating MEHLs intention to issue a notice of arbitration in respect of a potential claim relating to the Companys shares in MBL.

The Company currently holds 55 per cent. of the issued shares of MBL (the MBL Shares) with the remaining 45 per cent. held by MEHL. The Company and MEHL are parties to a joint venture agreement (JVA) relating to MBL, which governs their respective shareholdings in MBL. MEHL had purported to rely on the JVA to give notice to the Company to sell to MEHL or its nominee all of the Companys MBL Shares. The Company maintains that there is no basis for MEHL to give that notice. The Company has engaged lawyers and intends to vigorously resist the claim.

The Company is currently assessing the financial impact of the potential dispute. The Company will make further announcements, as appropriate, to update shareholders.

In the meantime, shareholders of the Company are advised to refrain from taking any action in respect of their shares in the Company which may be prejudicial to their interests, and to exercise caution when dealing with shares in the Company.

this is really a bolt out of the blue... MBL must have alot of potential for MEHL to do this....

Or simply because Thai Beverage already held a beer license in Myanmar. The government does not like two licenses for the same entity.

(29-08-2013, 05:12 PM)toiletsiao Wrote: this is really a bolt out of the blue... MBL must have alot of potential for MEHL to do this....

They saw the SGX Annc (which can be easily accessed via internet) especially slides 9-11 and realised the great potential and decided to quickly act...
To summarise, 83% mkt share, CAGR 17% ('05-'10) / 17% ('07-'17F), 48m population,...

The "usual' risk of regional expansion, more so in ASEAN... reminds me of TELCO investments in Thailand & Indonesia, Bank investments in Indonesia... rules and laws are subject to different interpretations... or even new legislations...

F&N says in beer spat with Myanmar partner

SINGAPORE - Singapore property and drinks conglomerate Fraser and Neave said on Thursday its joint venture partner, which is run by the Myanmar military, plans to start arbitration proceedings over the company’s stake in Myanmar Brewery.

The brewery represents only a small part of F&N’s business but losing its stake would mean being shut out of one of Asia’s fastest growing beer markets. In a May earnings briefing, F&N said its Myanmar beer business had recorded double digit growth from a year earlier.

F&N, which is controlled by Thai billionaire Charoen Sirivadhanabhakdi, currently holds 55 per cent of Myanmar Brewery while Myanmar Economic Holdings Ltd (MEHL) holds the remaining 45 per cent.

In a statement, F&N said the Myanmar company was trying to obtain its share in the brewery by citing a joint venture agreement. MEHL officials could not be reached for comment.

“The company maintains that there is no basis for MEHL to give that notice. The company has engaged lawyers and intends to vigorously resist the claim,” the F&N statement said.

Myanmar Brewery, which manufactures beer brands such as Myanmar Beer, Myanmar Double Strong and Andaman Gold, is estimated to have an 83 per cent share of Myanmar’s growing beer market by volume, F&N said in a recent presentation.

“Myanmar Brewery is important to F&N because of the emerging market exposure, the growth story for Myanmar is pretty strong and they are the dominant brewer,” said Mr Jit Soon Lim, head of Southeast Asia equity research at Nomura.

F&N said on Tuesday it would list shares in its property arm, Frasers Centrepoint, on the Singapore Exchange this year. F&N will keep the food and beverage as well as the publishing and printing businesses. REUTERS

Reuters Wrote:The brewery represents only a small part of F&N’s business

BusinessTimes gave a better perspective:

BT Wrote:F&N does not typically specify how much it makes from Myanmar Brewery. But in a report during its recent takeover by Thai tycoon Charoen Sirivadhanabhakdi, F&N independent financial adviser JP Morgan placed net income for the year ended September 2012 at $52 million for the brewery, based on management guidance.

Given that F&N owns 55 per cent of Myanmar Brewery, this would have contributed about $29 million, or 72 per cent, of F&N's $40 million in net profit from beverages in fiscal 2012.