ThaiBev could ride F&N to expand its non-spirits business

But there would not be an outright share swap, analysts reckon.

If ThaiBev is looking to expand its business outside Thailand, it should really consider using Fraser & Neave (F&N) as a vehicle to boost its market share.

However, DBS Group Research analysts believe that although there are talks about ThaiBev's plans of increasing its stakes in F&N, there would not be an outright share swap between ThaiBev and TCC Assets for F&N shares.

"Instead, we believe ThaiBev will only increase its stake in FNN when opportune, such as when FNN undertakes an equity fund-raising exercise, as and when it requires additional capital for expansion," analyst Andy Sim said.

To recall, the market had long been expecting a corporate restructuring of ThaiBev’s 28% stake in both F&N and FCL. The restructuring is expected to be completed this year.