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Heineken NV (HEIA), the world’s third- largest brewer, will extend its offer for Fraser and Neave Ltd. (FNN)’s stake in Asia Pacific Breweries Ltd. (APB) by a week after a request from the Singaporean food and property group.
The offer initially set to expire today will run until Aug. 3, Heineken said in a statement. The Amsterdam-based company said it “is keen to agree a consensual deal with F&N, however if Heineken is denied the ability to extend its offer to all APB shareholders it will review all options available to protect its commercial interests.”
F&N’s 40 percent stake in APB is a key target for Heineken, which owns 42 percent and said on July 20 it will offer as much as S$7.5 billion ($6 billion) for the rest. The Dutch company has been involved with APB since 1931 and seeks to protect its position after companies controlled by billionaire Charoen Sirivadhanabhakdi and his son-in-law agreed to acquire stakes in F&N and APB. Brewing assets in faster-growing emerging markets are drawing global bids after a decade of consolidation in the industry.
F&N hasn’t received other offers for the APB stake, it said in a statement to Singapore’s stock exchange today.
The S$50 a share bid is 19 percent above APB’s closing price of S$42 on the day before Heineken announced its plan and more than the S$45 that Charoen’s company is paying for a stake. The average premium paid in 45 takeovers of beermakers announced in the last two years was 25 percent before Heineken’s announcement, according to data compiled by Bloomberg.
The purchase would add to consolidation among brewers that have in the past relied more on joint ventures. Anheuser-Busch InBev NV (ABI), the world’s biggest brewer with an 18 percent share of the market, bid $20.1 billion for the remaining 50 percent of Grupo Modelo SAB last month, tightening its hold on the Mexican market.
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