Fraser & Neave (F & N)

[freedom]

another retail bond offering

2.48% for 5 year bond and 3.15% for 7 year bond.


ridiculous low yield corporate bond and long maturity...

[Bibi]

Yes ridiculously low but yet the issue will always be sold out.

[Nick]

Better than any FD products and very unlikely for F&N to go bust either. Good for those who seek capital protection.

[wsreader]

Capital may be protected but not purchasing power.

[dydx]

A FIXED rate of return of only 2.48%p.a. for a 5-year period, and only 3.15%p.a. for a 7-year period!! Quite obviously, such returns are grossly inadequate, notwithstanding the underlying credit risk or risk of default is acceptable. I guess only naive or silly investors with no sense of what is a fair or acceptable rate of return, will fall prey to it! The sad thing is that such investors may not be even aware of the additional price risk on the F&N bonds, should and when the prevailing historical low interest rates start to trend upwards - and my bet is that this almost certainly will happen in the next few years.

I think investors going for yield mainly and a regular cash return, should instead spend sometime understanding stocks that have a long track record of paying good, regular (and even potentially rising) dividends which have an underlying business with a proven track record of steady business growth and profitability - like Adampak.

[nitenite]

I think investors going for yield mainly and a regular cash return, should instead spend sometime understanding stocks that have a long track record of paying good, regular (and even potentially rising) dividends which have an underlying business with a proven track record of steady business growth and profitability - like Adampak.

yup, think SPH is a better bet with higher yield (based on current price of 3.80+) and somemore a blue chip

[Musicwhiz]

Business Times - 14 May 2011

F&N Q2 profit dips on lower property takings

But higher F&B earnings help offset impact

By EMILYN YAP

A GROWING food and beverage business helped make up for a slowdown in the property arm for local conglomerate Fraser and Neave (F&N).

The group's net profit fell in the second quarter, but rose slightly for the first half ended March 31.

In Q2, the top line grew 4 per cent year-on-year to $1.38 billion as sales in soft drinks, beers and dairy products rose. For instance, revenue from soft drinks climbed 19 per cent on the back of festive sales, the launch of new drinks and the distribution of the Red Bull energy drink.

Revenue from the investment property arm slid 11 per cent from the divestment of two retail malls to Frasers Centrepoint Trust (FCT). The group also stopped consolidating results from FCT.

The development property business contributed marginally less to the top line in Q2. Revenue from the printing and publishing division fell 8 per cent.

Profit before interest, taxation, fair value adjustments and exceptionals was $262.4 million, falling 11 per cent from a year ago. The property arm was the biggest contributor with $144.3 million or 55 per cent.

F&N's net profit after fair value adjustments and exceptionals was $148 million in Q2, down 37 per cent from a year ago. Excluding these items, net profit was $143.3 million - 16 per cent lower.

For the first half, group revenue rose 7 per cent year-on-year to $2.93 billion, also driven by higher F&B sales.

Net profit after fair value adjustments and exceptionals went up 3 per cent to $386 million. F&N has declared an interim dividend of 6 cents per share - more than last year's five cents.

The group is eyeing more growth in its F&B business and will be introducing more new products. It has also built up its distribution network and pushed products into new markets in preparation for the expiry of its licensing arrangement with The Coca-Cola Company in September. On the property front, Frasers Centrepoint will continue to roll out private residential projects. One of these will be at a site at Pasir Ris Drive 3/4 - bought jointly with Far East Organization - and units could be launched at an estimated $850 per square foot.

F&N gained 14 cents on the stock market yesterday to close at $6.24.

[KopiKat]

Interesting development at F&N, APB, OCBC, GEH. Yesterday's SGX Annc,

Oversea-Chinese Banking Corporation Limited (“OCBC Bank”) and Great Eastern Holdings Limited (“GEH”) wish to announce that they have been approached with an offer to purchase, inter alia, their combined stakes in Fraser and Neave, Limited (aggregating approximately 18.20% of Fraser and Neave, Limited’s total issued shares as at 31 March 2012) and Asia Pacific Breweries Limited (aggregating approximately 7.92% of Asia Pacific Breweries Limited’s total issued shares as at 31 March 2012), and they are having discussions on this.

[ValueBeliever]

Wow every Spore Inc. is now being approached by UNknown party. That is very interesting indeed. Looks like our real S chip is all for sale. Wonder why they keep saying its a unknown party.

When Hsu Fu Chi was listed here, they just told ppl outright the party is Nestle. All the bloody hankie pankie dealing and wheel. SGX is really casino!

[Temperament]

AS far as F&N is concerned, it has been an unsuccessful "Take-Over-Target" in the past more than one time already. i doubt this time is any difference. i think PAPYs will try their best to keep this "cash cow". But i was surprised when Papys sold SPC.
Vested many times in the past.
Congratulation to those who are vested now.