F&N/APB

F&N/APB: F&N has accepted Heineken's offer to buy its stake in APB for $5.1b or $50/share, and it is now up to the local conglomerate's shareholders to agree. What is sure to come is increased scrutiny of F&N itself, as selling APB may trigger F&N's split into its component beverage, ppty and printing divisions. Already, rumours of Kirin and Coca-Cola exploring bids for the non-beer business have surfaced. The deal is subject to sale conditions which includes approval from F&N's shareholders at EGM. A simple majority of shareholdings represented and voting at the meeting has to agree. With APB's fate now in the hands of F&N's shareholders, how ThaiBev votes (24.1%) will be crucial. It has given no clear indication of its preference so far. An F&N without APB is not what ThaiBev was after - it had bought into F&N for the brands and networks in both its beer and non-beer businesses, paying the OCBC stable a hefty $8.88 /share. Earlier this wk, ThaiBev told the press that it wants to collaborate with F&N, though it is not interested in buying out the conglomerate. The vote of Kirin - which owns almost 15% of F&N - will also carry significant weight. Although it owns a stake in F&N, it has been ring-fenced from APB and related competitive information. Kirin said that it had no plans to challenge Heineken for APB. In a potential scenario where F&N divisions were to be split out, it does raises questions if would any of our major property developers be interested in acquiring F&N property assets as well.