F&N reveals it eyes penetrating ASEAN markets deeper

Thailand is likely a ''long-term target''.

According to CIMB, FNN management held a briefing for sell-side analysts on the demerger of its property entity (FCL) via a proposed separate listing on SGX by undertaking a dividend in specie. 

For FNN (excl. FCL), management plans to go deeper into its ASEAN markets, with Thailand an obvious longer-term target.

Here's more from CIMB:

Some cost savings are expected on the procurement side as a combined group with Thai Bev – a positive. The bulk of the discussion was on FCL about how synergies can be reaped with TCC.

Management says that it is studying the possibility of acquiring TCC’s international hotels (excl. Thailand) and sees future development collaboration opportunities in Thailand.

With TCC, FCL believes it can be very competitive in that segment. As such, it is likely to be more proactive in the development space. For now, it sees its asset allocation mix as optimum. It is now ready to explore a hospitality REIT, which could come by 1H14.