Heineken has made a S$5.1 billion (US$4 billion) offer to buy the stake held by its joint venture partner, Fraser & Neave, in Asia Pacific Breweries, one of the fastest growing beer groups in Asia and owner of the Tiger brand. In accordance with the Singapore Code on Takeovers and Mergers, when the conditions of the offer are satisfied, Heineken will make a mandatory general offer for all the shares of APB not already owned by Heineken for a maximum consideration of S$2.4 billion.
Heineken’s offer is in line with the company’s strategy to expand its presence in emerging markets and follows transformational deals in recent years that have included the acquisition of the brewing operations of FEMSA in Mexico and Brazil, the partnership with United Breweries in India and acquisitions and capacity investments in Africa.
If agreed, the offer will strengthen Heineken’s platform for growth in some of the world’s most exciting and dynamic economies with fast-growing populations. The deal will give Heineken direct access to a number of important markets, including Cambodia, China, Indonesia, Malaysia, New Zealand, Papua New Guinea, Singapore, Thailand and Vietnam.
When completed, the offer will also strengthen Heineken’s portfolio, providing control of the strong international Tiger brand and strong regional and local brands such as Anchor, Bintang and Larue.
Jean-Francois van Boxmeer, chairman and chief executive of Heineken, comments: “We really value our partnership with F&N which goes back over 80 years, but due to changes in the F&N and APB shareholding, the fabric of the partnership has changed. As a result, it is time for us to look ahead to the next chapter of our Asian business, in whichSingaporewill continue to be our regional headquarters and both the Heineken and Tiger brand will spearhead our brand portfolio in Asia.”
He adds: “We believe that our offer for the APB shares is highly attractive and provides excellent value to F&N and APB shareholders. At the same time, taking control of APB will create long-term financial and strategic value for Heineken’s shareholders.”