Kirin Holdings Announces Acquisition of Shares in Fraser and Neave Limited

This transaction will provide Kirin with opportunities to expand its business base in the fast-growing Southeast Asian market, and Kirin plans to work closely with F&N to enhance the enterprise value for both companies.

Jul 27 2010 --- Kirin Holdings Company, Limited announced the signing of a Share Purchase Agreement for the acquisition of shares in Fraser and Neave Limited., the largest beverage company in Malaysia and Singapore. This investment will further enhance Kirin's international integrated beverage group strategy in the Asia and Oceania regions.

Kirin will acquire 205,500,000 shares in F&N (14.7% of total shares outstanding*1) from Seletar Investments Pte Ltd, which is a wholly-owned subsidiary of Temasek Holdings (Private) Limited for SGD6.50 (¥411.6) per share. The total consideration for the acquisition will amount to SGD1,335,750,000 (¥84.6billion) and the transaction is expected to be completed by July 29 2010. Kirin will fund the acquisition through existing cash on hand and borrowings.

Kirin's vision, as stated in its long-term strategic plan KV2015, is to be a leading company in Asia and Oceania in the area of food and health, and it has been pursuing its business strategy focused on growing profitability in these regions and areas. F&N is a Singapore Exchange-listed conglomerate involved in food and beverage, brewery and real estate businesses. F&N's food and beverage business is focused on soft drinks and dairy products, and operates through an extensive network in the Southeast Asian market including Singapore, Thailand and Malaysia.

This transaction will provide Kirin with opportunities to expand its business base in the fast-growing Southeast Asian market, and Kirin plans to work closely with F&N to enhance the enterprise value for both companies. Following completion of the share acquisition, Kirin will discuss with F&N about possible areas of collaboration.