FNN / Thai Bev

FNN / Thai Bev: The Thai consortium bidding for control of FNN highlights it will be a long term strategic investor in FNN and plans to keep the co listed if its $8.88/sh GO succeeds. It has no immediate plans to materially change FNN’s businesses or redeploy its assets, but will undertake a strategic review of FNN. The offer closes 29 Oct. Sh/h will today vote on the sale of APB to Heineken for $5.6b, as well as the proposed 1:3 capital reduction plan to return $4b, or $8.50 per cancelled sh to FNN sh/h. The Thai’s, who control 30.7% stake in FNN, had indicated they would block the capital reduction, which requires 75% sh/h approval to pass. Separately, the Nikkei reported that Kirin is expected to sell its entire 15% stake in FNN, and enjoy capital gains of more than ¥30b (~S$475m). While Kirin has responded that the media report was not based on any company announcement, mkt watchers note, with Thai Bev strengthening its control of FNN, it is becoming more difficult for Kirin to reap the benefits of its partnership with FNN. FNN and APB have requested for their shares to be halted pending the results of FNN’s EGM this morning.