Dutch brewer Heineken NV (AMS:HEIA) said on Wednesday it had bought 6.92m shares of its Singapore-based takeover target Asia Pacific Breweries Ltd (SGX:A46), or APB, representing a 2.68% stake, via a combination of open market deals and married trades.
The deals were carried out on 21 August at a price per share of SGD53.00 (USD42.34/EUR33.96), the buyer said.
Heineken, which agreed to buy Fraser & Neave Ltd’s (SGX:FNN), or F&N, 7.26% direct stake in APB and its 50% in the non-APB assets controlled by Asia Pacific Investment Private Ltd, APIPL, their joint venture controlling 64.8% in APB, said that with the APB stake just bought on the market its deemed interest in its target would be 84.24%.
The Dutch group offered SGD50.00 a share for F&N’s 39.7% direct and indirect stake in APB in July and agreed in August to raise the price to SGD53.00 per share to fend off a rival offer by Thai Kindest Place Groups Ltd (KPG) for F&N’s direct interest in APB.
As condition to the revised offer, F&N is not to solicit or consider any alternative offers for its direct and indirect stake in APB.
Under the increased offer, Heineken is paying SGD5.6bn for F&N’s direct and indirect stake in APB, it has said, adding that at completion of this deal it would launch a mandatory bid worth SGD2.5bn for the rest of APB. For F&N’s interest in the non-APB assets controlled by APIPL the price remains SGD163m as initially agreed.
With this transaction Heineken ensures a stronger platform for growth in dynamic markets, allowing it access to Cambodia, China, Indonesia, Malaysia, New Zealand, Papua New Guinea, Singapore, Thailand and Vietnam, while widening its portfolio by ensuring control over internationally known Tiger beer brand, as well as other regional and local brands, it has said.
It plans to use existing cash and debt to finance the deal, which it aims to wrap up in the fourth quarter.