Heineken-F&N deals set break fee at S$55M

F&N will pay if acquisitions do not complete by 15 December 2012.

Subject to the terms of the sale agreements of its APB and APIPL shares, Fraser and Neave has agreed to pay to Heineken a break fee of S$55,913,000 if both deals do not complete by the Long Stop Date of 15 December 2012, APB said in its cash offer announcement to the Singapore Exchange.

The break fee will be paid out under three scenarios. First, only if the the acquisitions do not complete as a result of shareholders voting against the proposed acquisitions at the extraordinary general meeting to be set by F&N.

Also, as a result of as a result of the F&N Board of Directors withholding the Vendor Board Recommendation from the circular to be issued to the shareholders in connection with the proposed acquisitions, or if such Vendor Board Recommendation has been given, the F&N Board of Directors revoking the Vendor Board Recommendation at any time before the scheduled extraordinary general meeting.

Or, due to the default of F&N in carrying out its obligations under the agreement, other than for reasons beyond its control.