F&N, APB, OCBC

F&N, APB, OCBC: There has been a bid for OCBC’s combined stake of 18.2% of F&N and 7.92% of APB by an unknown 3rd party. So far the deal is pending and there is no certainty that it will be carried out. No price has been mentioned as well. Speculation has placed Kirin Hldgs and Heineken as possible interested parties. Kirin currently holds a 14.9% direct stake in F&N and a 7.26% in APB. Heineken holds a 9.49% stake in APB. If Kirin is the interested party, this will trigger a conditional general offer for F&N as its stake will breach the stipulated threshold of 30%. Kirin’s earlier stake purchase in F&N was done at $6.50 from Temasek and further increased its share in Feb from 14.68% to current levels at above $6.00 At current prices OCBC’s F&N stake is worth approx $2.0b and APB stake at $709.4m. OCBC currently trades at 1.3x P/B and its market cap $31.5b. F&N trades at approx 1.6x P/B with P/E of 14.9x APB trades at approx 7.1 P/B with P/E of 23.8x These counters should see a spike in interest and price in the meantime until further details are announced. Other drink and liquor counters listed in Sg include Yeo Hiap Seng and Dukang Distillers.