Kirin to acquire 14.7% Fraser & Neave stake from Temasek

Kirin's S$1.3 bln purchase targeted to expand soft drinks, dairy operations in Southeast Asia.

Japan's Kirin Holdings will buy a 14.7 percent stake in beer and property conglomerate Fraser & Neave from Singapore state investor Temasek Holdings for $953 million (S$1.3 billion) to accelerate its expansion in Asia.

Kirin has spent nearly $5 billion on acquisitions in the past two years to diversify its operations and grow outside its saturated home market of Japan, where it vies for the top spot in beer sales with Asahi Breweries.

The maker of Ichiban Shibori beer agreed to pay S$6.5 for each share of Fraser & Neave, a 15 percent premium to Monday's closing price. The S$1.3 billion ($953 million) investment will make Kirin the second-largest shareholder after Singapore lender OCBC.

The brewer said the transaction was primarily aimed at bolstering its soft drinks and dairy products businesses in Southeast Asia and it did not plan to raise its stake further. The company said, however it would look for other deals to drive growth.

View the full story in Reuters.