OCBC says it will hold on to its stake in F&N and has no plans to divest its long term investment. OCBC owns a direct 3.3% stake while controlling another 10.57% via 85% owned Great Eastern. Going by its past acqns in Lion Nathan & San Miguel, market watchers suggest that Kirin could be eyeing at least 20% stake vs the current 14.7% it acquired from Temasek, in order to gain strategic control.
We do not believe Kirin’s long term interests lie in F&N’s large property exposure, which may lead to an eventual breakup of F&N’s brewery (to Kirin?) and property (retained by OCBC) businesses.
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