.Overseas Union Enterprise Not Increasing Offer Price for F&N
By Joyce Koh - Jan 21, 2013 5:39 PM GMT+0630 ..Facebook Share LinkedIn Google +1 0 Comments
Print QUEUEQ..A group led by Overseas Union Enterprise Ltd. (OUE) said it won’t raise a S$13.1 billion ($10.7 billion) bid for Fraser & Neave Ltd., dashing speculation it might offer a higher price for the drinks and property company.
Thai billionaire Charoen Sirivadhanabhakdi made a S$9.55 a share offer for F&N on Jan. 18, topping the OUE-led group’s Nov. 15 offer of S$9.08 per share. Charoen’s company said yesterday it has raised his stake to more than 40 percent.
Overseas Union Enterprise Not Increasing Offer Price for F&N Munshi Ahmed/Bloomberg
A woman shops for Fraser & Neave Ltd. soft drinks at a supermarket in Singapore.
A woman shops for Fraser & Neave Ltd. soft drinks at a supermarket in Singapore. Photographer: Munshi Ahmed/Bloomberg
.“In order to secure the more than 50 percent acceptances for the offer to become unconditional, the offeror would need to significantly increase the offer price to a level which is no longer as attractive to OUE,” OUE said in a statement to the Singapore Exchange today.
OUE’s decision gives Charoen the upper hand as he seeks control of the 130-year-old company to expand in Asia. Charoen agreed to buy a stake in the company in July and set off a fight for its assets that extend from serviced apartment to beverages in the biggest takeover of a Singapore-based company.
OUE, a Singapore-based property company, had enlisted Japanese brewer Kirin Holdings Co. in its November bid. OUE would get the company’s property business and Kirin would take the food and beverage unit, under that pact.