Fraser & Neave Ltd.’s (F99.SI, FNEVF, FNEVY) independent financial adviser JPMorgan Chase & Co. (JPM: Quote) said Sunday that Thai billionaire Charoen Sirivadhanabhakdi’s sweetened takeover offer of S$9.55 for the Singapore-based conglomerate was “fair from a financial point of view”.
In a letter to Fraser & Neave or F&N’s shareholders, JP Morgan said that the sweetened offer from TCC Assets Ltd., a special purpose vehicle connected to Charoen, fell within the range of its estimated sum-of-the-parts valuation of each F&N share of S$8.58 to S$11.68.
TCC Assets, in mid-December, lifted its cash offer for F&N to S$9.55 per share, intensifying the takeover battle for the Singapore-based conglomerate. The revised bid, which was declared by Charoen as final, valued all of F&N at S$13.75 billion or $11.2 billion.
Four independent directors of F&N, who hold shares in the company, intend to accept Charoen’s revised offer. This clears the way for Charoen to gain control of the conglomerate.
TCC’s previous offer was for S$8.88 per share, while a consortium led by property developer Overseas Union Enterprise Ltd., a unit of Indonesia’s Riady family, had made an offer of S$9.08 per share for the company.
F&N is engaged in various businesses including the production and sale of soft drinks, dairy products, beer and stout, development of and investment in property, and printing and publishing.
F&N has been the target of a takeover battle since July 2012 when Charoen first began buying stakes in the firm. This prompted Dutch brewer Heineken NV (HINKY) to buy out its beer-brewing joint venture with F&N. Eventually, F&N sold its 40 percent stake in Tiger beer maker Asia Pacific Breweries Limited or APB to Heineken in September for $4.6 billion.
Charoen made his initial bid in September 2012 for F&N, while the Overseas Union-led consortium in November made a counter offer of $10.6 billion. Following Charoen’s revised bid, Overseas Union decided not to raise its own offer.
FNEVY closed Friday’s trading at $39.05 0.55 1.43 percent on a volume of 133 shares.
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by RTT Staff Writer
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