Heineken to Purchase Kindest Place Groups’ 8.6% Stake in Asia Pacific Breweries

Billionaire Charoen Sirivadhanabhakdi's Thai Beverage PCL and TCC Assets Ltd said they would vote in favor of the sale of Singapore conglomerate Fraser and Neave's (F&N) stake in Asia Pacific Breweries Ltd to Heineken.

20 Sep 2012 --- Dutch brewer Heineken NV took a major step towards winning control of the Tiger beer brand and an Asian brewing network yesterday after a Thai rival accepted the deal.

Billionaire Charoen Sirivadhanabhakdi's Thai Beverage PCL and TCC Assets Ltd said they would vote in favor of the sale of Singapore conglomerate Fraser and Neave's (F&N) stake in Asia Pacific Breweries Ltd to Heineken.

In return, Heineken, the world's third-biggest brewer, will not make an offer for shares in F&N.

The deal between the Thais, the biggest F&N shareholders with a near 31% stake, and the Dutch brewer ended a two-month stand-off involving competing offers for control of APB.

After the agreement, Heineken also said it would buy an 8.6% direct stake in APB owned by Sirivadhanabhakdi's son-in-law through his company, Kindest Place Group.

Heineken, already sharing control of APB through an 81-year-old venture with F&N, now seems set to take full control of the brewer and protect its turf in Asia's fast-growing beer market.

Last month, Heineken published its figures for the first half of 2012, delivering solid growth. Revenue rose 4.5% organically, driven by higher total consolidated volumes of 1.6% and revenue per hectolitre growth of 2.9%. Group beer volume rose 3.3% with increases in four out of five regions.

Heineken brand volume grew by 6%, once again outperforming the international premium segment and the overall beer market.