Fraser & Neave (F & N)

[CityFarmer]

RECEIPT OF OFFER FOR HOSPITALITY AND SERVICED RESIDENCE BUSINESS OF THE COMPANY.
The saga continues...

http://info.sgx.com/webcoranncatth.nsf/V...20080A217/$file/FNL-Third_Party_Asset_Offer_10.10.12.pdf?openelementhttp://

The Board wishes to announce that the Company has received an unsolicited binding cash offer from a third party (the “Third Party”) to acquire the hospitality and serviced residence business of the Company and its related assets for an aggregate consideration of approximately S$1.4 billion on a cash free, debt free basis and free from encumbrances

$1.4 billion = $0.99 per share, but not sure the premium above book value?

[CityFarmer]

Key message from the ID's and IFA's reports.

Recommendation of the Independent Directors.
The Independent Directors, having carefully considered the terms of the F&N Offer and the advice given by J.P. Morgan to the Independent Directors in the J.P. Morgan Letter, share J.P. Morgan’s view that the Offer Price is not compelling, though fair

The range of the estimated sum-of-the-parts valuation of each Share by J.P. Morgan (as set out in Section 8.10 of the J.P. Morgan Letter)4 is between S$8.30 and S$11.22. As such, while the Offer Price at S$8.88 falls within the range of such valuation, it lies at the low end of the range

[VestedInterest]

Key message from the ID's and IFA's reports.

Recommendation of the Independent Directors.
The Independent Directors, having carefully considered the terms of the F&N Offer and the advice given by J.P. Morgan to the Independent Directors in the J.P. Morgan Letter, share J.P. Morgan’s view that the Offer Price is not compelling, though fair

The range of the estimated sum-of-the-parts valuation of each Share by J.P. Morgan (as set out in Section 8.10 of the J.P. Morgan Letter)4 is between S$8.30 and S$11.22. As such, while the Offer Price at S$8.88 falls within the range of such valuation, it lies at the low end of the range

The last two 'not compelling' reports from IFA's I can recall, ie Neratel and K1 Ventures, saw the offer not going through, without raising of the offer price. There is a likelihood that this might occur again with F&N. So if THBev is really serious about getting that 50% magic mark, they may have to raise the offer price. This especially, in the light of the unsolicited offer for F&N's hospitality business. Let's see if a trading halt will be called soon. Very interesting indeed!

[propertyinvestor]

Key message from the ID's and IFA's reports.

Recommendation of the Independent Directors.
The Independent Directors, having carefully considered the terms of the F&N Offer and the advice given by J.P. Morgan to the Independent Directors in the J.P. Morgan Letter, share J.P. Morgan’s view that the Offer Price is not compelling, though fair

The range of the estimated sum-of-the-parts valuation of each Share by J.P. Morgan (as set out in Section 8.10 of the J.P. Morgan Letter)4 is between S$8.30 and S$11.22. As such, while the Offer Price at S$8.88 falls within the range of such valuation, it lies at the low end of the range

The last two 'not compelling' reports from IFA's I can recall, ie Neratel and K1 Ventures, saw the offer not going through, without raising of the offer price. There is a likelihood that this might occur again with F&N. So if THBev is really serious about getting that 50% magic mark, they may have to raise the offer price. This especially, in the light of the unsolicited offer for F&N's hospitality business. Let's see if a trading halt will be called soon. Very interesting indeed!

You missed out a 3rd one. Wing Tai. And the partial offer went through.

[shanrui_91]

the culprit is out

http://info.sgx.com/webcoranncatth.nsf/V...3004B3B57/$file/OUE.pdf?openelement

seemed like they have to gear up to be capable of making a 1.4 billion cash offer

[swakoo]

seemed like they have to gear up to be capable of making a 1.4 billion cash offer

OUE said in mid-September it gave an unnamed party exclusive rights to conduct due diligence on it's properties, Mandarin Orchard and Gallery. According to OUE's annual report, the Mandarin Orchard Singapore's fair value is S$1.18 billion and the Mandarin Gallery's is S$520.0 million.

[freedom]

the key is not F&N board, but Kirin.

If Kirin is going to sell, it does not matter what's the decision of the board. TCC would be easy to have 50%.

also, it is not fair of the fair value range. If not for ThaiBev coming in, APB probably would not be sold or not be sold for so much.

[CityFarmer]

the key is not F&N board, but Kirin.

If Kirin is going to sell, it does not matter what's the decision of the board. TCC would be easy to have 50%.

also, it is not fair of the fair value range. If not for ThaiBev coming in, APB probably would not be sold or not be sold for so much.

I share your view.

The fair value range is misleading if probability has taken into consideration. The distribution of proceed from APB sales is still an unknown. The same for the newly announced properties asset offer

[CityFarmer]

"Japan’s Kirin Holdings Co is considering all possible options for its holdings in Singapore conglomerate Fraser and Neave, President Senji Miyake said at a briefing on Monday" - The Edge Singapore (MONDAY, 15 OCTOBER 2012 16:00)

http://www.theedgesingapore.com/the-dail...ares-.html

It is still hope for Kirin to accept and close the GO

(note vested)

[CityFarmer]

The share price has been "normalized" back to $8.88, with transacted volume of 7.4 mil shares @$8.88 today. Total volume is 12.5 mil shares.

It seems $8.88 offer price is acceptable to minority shareholders