Heineken agrees $4.5 billion for Tiger Beer owner APB

Published:  20 Aug at 9 AM

Heineken is likely to take a controlling stake in the producer of Tiger Beer after a deal worth $4.5 billion was agreed with Fraser and Neave for its controlling stake in Asia Pacific Breweries. However, the deal still has to be approved through a vote by the company’s shareholders.

In a statement, Jean-Francois van Boxmeer, Heineken’s chief executive confirmed that the brewer’s headquarters in Asia would remain in Singapore and that the firm was committed to successfully growing Tiger Beer and the other names under the APB umbrella which include Bintang Beer, Archipelago Beer, ABC Extra Stout, Baron’s Strong Brew and Anchor Beer.

Fraser and Neave has agreed that it will not engage with any other companies concerning the Heineken deal until its shareholders have voted. The deal means that Thai Beverage owner, billionaire Charoen Sirivadhanabhakdi, is not permitted to push forward with an offer of 55 Singapore dollars per share for a smaller share of APB.

ThaiBev currently owns a 26.4 per cent stake in Fraser and Neave which will give the Thai family considerable influence when it comes to the shareholder vote. ThaiBev is the second largest brewer in South East Asia behind San Miguel in the Philippines.

Heineken had originally offered 50 Singapore dollars per Fraser and Neave share, but has since revised the offer up to 53 Singapore dollars for an 81.6 per cent stake in APB. It is likely that the Dutch brewer will automatically apply for the remaining shares valued at 2.5 billion Singapore dollars.