Thai Billionaire’s Singapore revamp wins over market

"F&N was just playing hardball," says analyst.

According to a report by Bloomberg, Charoen Sirivadhanabhakdi, Thailand's richest man, is getting support in the bond market for his plan to reorganize Fraser & Neave Ltd., a maker of beverages, books and luxury condos.

The 130-year-old Singapore conglomerate, which Charoen bought this year, sweetened terms after debt holders refused a bid last month to change the conditions on notes including its 2016 Singapore-dollar bonds so it could spin off its property unit. The yield on those securities dropped to a two-month low at 2.27 percent, DBS Group Holdings Ltd. prices show. Corporate yields in the currency average 3.17 percent, according to HSBC Holdings Ltd.

“I think F&N was just playing hardball,” said Donald Chua, an equity analyst at CIMB Bank Bhd in Singapore who expects the case to be closed by next week.

Read full report here.