wednesday, 22 august of 2012

Temasek sells brewer stake

Beer businesses

Temasek sells brewer stake

Singapore state investment company Temasek Holdings Pte. Ltd. sold its 1.4% stake in Asia Pacific Breweries Ltd. to Dutch brewer Heineken NV, which is looking to gain control of the maker of Tiger Beer, one of Asia's most profitable beer businesses, two people familiar with the situation said Tuesday.

The move will bring Heineken's stake in Asia Pacific Breweries to 43.3%, further consolidating its position to gain control of the beer business and fend off rival bidders.

Temasek confirmed the sale, but didn't give details on the buyer or the price at which it was sold. But another person familiar with the transaction said that Heineken bought the Temasek stake at 53 Singapore dollars (US$42.40) per share. The deal totaled S$190.8 million.

Heineken this weekend said it hadraised its existing offer by S$3 to S$53 a share for Asia Pacific Breweries, a joint venture between the Dutch brewer and Singapore conglomerate Fraser & Neave Ltd., for Fraser & Neave's entire 39.7% direct and indirect stake in the business.

Fraser & Neave and Heineken each own half of a joint venture with a 64.8% stake in Asia Pacific Breweries. Separately, Fraser & Neave has a 7.3% direct stake in the company and Heineken owns 9.5% outright.

Heineken said on Saturday that it had signed "definitive agreements" with the board of the Singaporean investment conglomerate, which will recommend that its shareholders approve the sale.

Heineken hopes to increase its presence in growth markets in Asia to help offset lackluster sales in its home base of Europe.

(Published by WSJ - August 21, 2012)

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