F&N/APB

F&N/APB: Heineken is reportedly in talks with F&N about an increased offer for Asia Pacific Breweries, perhaps at $55 or better to all shareholders instead of Kindest Place’s $55 offer only for F&N’s 7.3% direct stake in the brewer. F&N and Heineken share a 50-50 JV that owns 64.8% of APB. F&N also has a 7.3% direct stake in APB and Heineken 9.5%. Earlier this month, the board of F&N recommended its shareholders accept Heineken's $50 offer for the whole of APB. But a revised higher offer from Thai-based Kindest Place has complicated the deal. The latest move by Heineken is aimed at securing F&N's support against rival offers for APB, the maker of Tiger beer. By taking full control of APB, Heineken will have a greater share of one of Asia's most profitable beer makers at a time when it is facing lacklustre sales in its home base in Europe. APB's Tiger and Bintang beer brands have nearly 50% of the beer market in Indonesia, Malaysia and S’pore. APB has 30 breweries and 40 brands spanning 14 Asian countries. It also brews Heineken beer for some markets in the region. Even if F&N's board accepts an increased offer by Heineken, shareholders will still have to vote on the deal. That means Heineken will have to win over Thai Beverage, the largest shareholder in F&N with a 26.4% stake, and Japan's Kirin Holdings, which has 15%, in buying out APB. Both ThaiBev, which sells Chang beer, Thailand's top beer, and Kirin compete with Heineken in the SE Asian region.