Fraser & Neave (F & N)

[rokcradle]

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.

Looking at FNN group structure (http://www.fraserandneave.com/FN_aboutus...ucture.asp)

Food & Beverages
Soft Drinks and Dairies

1) Fraser & Neave Holdings Bhd:Malaysia, Thailand & Brunei

2) Other unlisted F&B operations: Singapore, Malaysia & Vietnam

Beer - Myanmar

So possible to have a F&B Holdco spin-off containing 56.05% FNN Berhad + other unlisted F&B + Beer in Myanmar (arguably a very attractive asset)?

Anyways, this is just a guess, just letting the creative juice go wild.

[KopiKat]

NOTICE OF BOOKS CLOSURE FOR PROPOSED CAPITAL REDUCTION

Extracts,


7. IMPORTANT EVENTS AND DATES

Shareholders should note the following events and dates:

Last date and time of “cum” trading of the Shares on the SGX-ST : 19 July 2013 at 5.00 p.m.

Commencement of “ex” trading of the Shares on the SGX-ST : 22 July 2013 at 9.00 a.m.

Books Closure Date for the Capital Reduction : 24 July 2013 at 5.00 p.m.

Effective date of the Capital Reduction : 25 July 2013

Expected Payment Date for the Cash Distribution pursuant to the Capital Reduction : On or about 31 July 2013

[ngcheeki]

NOTICE OF BOOKS CLOSURE FOR PROPOSED CAPITAL REDUCTION

Extracts,


7. IMPORTANT EVENTS AND DATES

Shareholders should note the following events and dates:

Last date and time of “cum” trading of the Shares on the SGX-ST : 19 July 2013 at 5.00 p.m.

Commencement of “ex” trading of the Shares on the SGX-ST : 22 July 2013 at 9.00 a.m.

Books Closure Date for the Capital Reduction : 24 July 2013 at 5.00 p.m.

Effective date of the Capital Reduction : 25 July 2013

Expected Payment Date for the Cash Distribution pursuant to the Capital Reduction : On or about 31 July 2013

Thank you and I'm monitoring this date as well . Just curious that why there is no CE symbol indicates under the remark column for SGX price listing of F&N as well as there is no disclosure under the corporate action under F&N?

I'm expecting the share price of F&N to fall by less than the amount of capital reduction of $3.28 after Ex trading because the Thai Towkay is holding for more than 90+% and he is unlikely to sell after the Ex-Date. In addition, there are many value buddies holding on to F&N and waiting for the coming corporate restructuring of F&N to unlock its value.

vested

[toiletsiao]

NOTICE OF BOOKS CLOSURE FOR PROPOSED CAPITAL REDUCTION

Extracts,


7. IMPORTANT EVENTS AND DATES

Shareholders should note the following events and dates:

Last date and time of “cum” trading of the Shares on the SGX-ST : 19 July 2013 at 5.00 p.m.

Commencement of “ex” trading of the Shares on the SGX-ST : 22 July 2013 at 9.00 a.m.

Books Closure Date for the Capital Reduction : 24 July 2013 at 5.00 p.m.

Effective date of the Capital Reduction : 25 July 2013

Expected Payment Date for the Cash Distribution pursuant to the Capital Reduction : On or about 31 July 2013

Thank you and I'm monitoring this date as well . Just curious that why there is no CE symbol indicates under the remark column for SGX price listing of F&N as well as there is no disclosure under the corporate action under F&N?

I'm expecting the share price of F&N to fall by less than the amount of capital reduction of $3.28 after Ex trading because the Thai Towkay is holding for more than 90+% and he is unlikely to sell after the Ex-Date. In addition, there are many value buddies holding on to F&N and waiting for the coming corporate restructuring of F&N to unlock its value.

vested

19th July(This coming friday) is the SGX imposed deadline for Charoen to restore FNN's free float...still waiting for news on how he will do it...that will help remove alot of uncertainties...i think FNN will fall less than the amt of cap reduction too

[greengiraffe]

NOTICE OF BOOKS CLOSURE FOR PROPOSED CAPITAL REDUCTION

Extracts,


7. IMPORTANT EVENTS AND DATES

Shareholders should note the following events and dates:

Last date and time of “cum” trading of the Shares on the SGX-ST : 19 July 2013 at 5.00 p.m.

Commencement of “ex” trading of the Shares on the SGX-ST : 22 July 2013 at 9.00 a.m.

Books Closure Date for the Capital Reduction : 24 July 2013 at 5.00 p.m.

Effective date of the Capital Reduction : 25 July 2013

Expected Payment Date for the Cash Distribution pursuant to the Capital Reduction : On or about 31 July 2013

Thank you and I'm monitoring this date as well . Just curious that why there is no CE symbol indicates under the remark column for SGX price listing of F&N as well as there is no disclosure under the corporate action under F&N?

I'm expecting the share price of F&N to fall by less than the amount of capital reduction of $3.28 after Ex trading because the Thai Towkay is holding for more than 90+% and he is unlikely to sell after the Ex-Date. In addition, there are many value buddies holding on to F&N and waiting for the coming corporate restructuring of F&N to unlock its value.

vested

19th July(This coming friday) is the SGX imposed deadline for Charoen to restore FNN's free float...still waiting for news on how he will do it...that will help remove alot of uncertainties...i think FNN will fall less than the amt of cap reduction too

No worries, looking at how S Trading has been doing to get extension from SGX to restore free float, F&N is likely to have no problems extending the deadline especially when there are so many things ongoing in the company.

[KopiKat]

Just curious that why there is no CE symbol indicates under the remark column for SGX price listing of F&N as well as there is no disclosure under the corporate action under F&N?

After the EGM, they had to clear other requirements. From the same SGX Annc,

2. CONFIRMATION BY THE HIGH COURT
The Board is pleased to announce that the Capital Reduction was approved by the High Court of the Republic of Singapore on 16 July 2013. There are no other outstanding conditions to the Capital Reduction. Accordingly, the Capital Reduction will become effective upon the lodgement by the Company of the Order of Court approving the Capital Reduction, together with the other documents prescribed under the Companies Act, with the Registrar of Companies and Businesses, which is expected to be on 25 July 2013. The exact entitlements of the Shareholders to the Cash Distribution will be determined as at the Books Closure Date.

We ought to see the 'CE' symbol from tomorrow. Sometimes, SGX is a bit slow and 'CE' may only appear in the afternoon.

[greengiraffe]

Told you so... not difficult to get extensions...

Maybe UBS didn't get a mandate so issued a sell on ThaiBev...

http://infopub.sgx.com/FileOpen/FNN-Exte...eID=248301

[Trader88]

Told you so... not difficult to get extensions...

Maybe UBS didn't get a mandate so issued a sell on ThaiBev...

http://infopub.sgx.com/FileOpen/FNN-Exte...eID=248301

You are good. .
SGX is so pro-listed companies. Almost 6 months extension!!

[NTL]

Told you so... not difficult to get extensions...

Maybe UBS didn't get a mandate so issued a sell on ThaiBev...

http://infopub.sgx.com/FileOpen/FNN-Exte...eID=248301

You are good. .
SGX is so pro-listed companies. Almost 6 months extension!!

Listing has listing fees. Listing fees is payable to SGX. So, why not? SGX will not want to lose a big fish like F&N by saying no.

[psolhawk]

I think everyone knows this, just a restatement from CIMB.

Fraser & Neave | PDF
SOP value after capital reduction
FNN SP / FRNM.SI | OUTPERFORM - Maintained | S$5.63 - Tgt. S$6.53
Mkt.Cap: US$6,412.00m | Avg.Daily Vol: US$14.24m | Free Float: 9.70%
Property Development | Author(s): Donald CHUA,
▊ FNN shares have commenced “ex” trading. We believe that more clarity from TCC/Thai Bev on its plans to 1) restructure FNN’s F&B and property businesses and 2) restore the stock’s public float will be the key milestones to watch for and could catalyse the stock. We slash our SOP estimates from S$10.94 to S$7.60, largely to account for the capital reduction. Our FY14-15 core EPS numbers are cut by 3-6%. Thus, our target price (still based on a 20% discount to its property RNAV) is now lower. We estimate that investors will be getting its property business at an implied discount to RNAV of 37% – among the widest in the sector. Maintain Outperform.

What Happened
FNN’s shares have commenced “ex” trading, following the proposed cash distribution of S$3.28 via capital reduction. Book closure date will take place on 24 Jul 13 at 5pm, with the expected payment date on or about 31 Jul 13.

What We Think
In our view, the decision to repay shareholders is the first of many corporate actions expected of the group. On 28 Jun 13, FNN announced that it will carry out a strategic review of the group, which may involve a break-up of the current conglomerate structure. Media reports also suggest that its controlling shareholder, Charoen Sirivadhanabhakdi, may be spinning off FNN’s hospitality assets into a REIT, along with assets under his TCC group. TCC/Thai Bev has yet to reveal its strategy for FNN. The final deadline to restore FNN’s free float to 10% or above has been extended to 31 Dec 13, and we expect TCC/Thai Bev to finalise its intentions in the next few months. Overall, we believe that there is a huge potential for the stock’s valuation gap to narrow via more corporate restructuring moves. TCC Land owns a large portfolio of investment properties in the region (e.g. the largest owner of Marriot- branded hotels in Asia Pacific). FNN, which currently has two REITs in place and over S$1.4bn worth of serviced apartments, should be TCC’s ideal property vehicle for pursuing growth. At current levels, we estimate that investors of FNN will be getting its property business at an implied RNAV discount of 37%, backed by a low FY13F net gearing of 12%.

What You Should Do
Maintain Outperform with more corporate actions expected to act as share price catalysts.