F&N

F&N: Has agreed to accept offer by Heineken to acquire interest in APB at $53 per share. The 32.4% stake is valued at approx $4.43b with its 7.3% direct stake at $994m, a 6.0% increase over Heineken's prev offer. There is also a break fee of $55.9m payable to Heineken if co’s sh/h does not approve the transaction. Heineken will undertake not to manufacture or distribute soft drinks in Sg, Papua New Guinea, Cambodia and Vietnam if the transaction goes through and likewise F&N will not sell brewery products in these locations as well. Heineken’s prev offer was also only for co’s direct stake while the current revised offer includes co’s entire interest. The deal is given a timeline of 120 days from 18 Aug before it lapses. This is approx 35.1x P/E and $2 lower than Kindest’s partial offer (only for direct 7.3% stake) at $55. Cimb maintains outperform but decreases TP to $9.85 from $10.00