Charoen close to winning F&N battle
Thai billionaire heads for victory in fight for Fraser & Neave as rival declines to match bid
Thailand's richest man has come closer to winning control of Fraser & Neave after a rival group failed to top his S$13.8 billion (HK$87 billion) offer for the 130-year-old property and beverage company.
A group led by Overseas Union Enterprise (OUE) said on Monday it would not match Charoen Sirivadhanabhakdi's January 18 offer of S$9.55 a share. The group had bid S$9.08 a share in November last year.
OUE's decision gives Charoen the upper hand after a two-month battle over a company that has assets from soft drinks to serviced apartments. He has built a 40 per cent stake in F&N in his push to win the biggest takeover of a Singapore-based company.
"It's all over," said Jonathan Foster, a director of special situations at Religare Capital Markets. "All said and done, S$9.55 is not a bad outcome. While it's not quite as good as what it could have got, I think the vast majority of F&N shareholders would be satisfied, considering where the stock was trading before the saga erupted."
Charoen's TCC Assets still needs to gain the support of a majority of shareholders.
F&N shares, which last traded at S$9.55 yesterday, have gained 22 per cent since Charoen announced his initial investment in the company on July 18, three times the gain in the benchmark Straits Times Index.