F&N says yes to Heineken

Fraser and Neave couldn’t resist Heineken’s over $5 billion offer to acquire F&N’s interest in Asia Pacific Breweries.

F&N said it has communicated to Heineken the acceptance of the offer. The aggregate consideration of $5.28 billion values F&N’s interest in APB at $50 per share and $163 million for its other assets held by Asia Pacific Investment Pte Ltd, F&N’s 50:50 joint venture with Heineken.

“While all of us at F&N maintain a strong emotional attachment to APB and the Tiger beer brand, this offer price of $50 represents an attractive premium and the sale of APB allows us to immediately unlock substantial value in the Beer business, which is consistent with our intent to maximise returns for F&N shareholders,” said Mr Lee Hsien Yang, Chairman of F&N.

A joint venture between F&N and Heineken, APB was established in 1931. F&N and Heineken went on to open the first brewery in Singapore and launched Tiger beer a year later.