Thais bid for F&N at $8.88: you read it here 1st

Woots again! I predicted that the Thais would bid for Fraser & Neave at S$8.88 in this blog on Aug 29, more than two weeks be4 the offer was unveiled today 😆

Read it again here: https://singaporegirl.wordpress.com/2012/08/29/thaibev-to-bid-for-fn-at-8-88/

This was against the perceived wisdom of professional anaylsts who mostly say the Thais won’t have the guts or more precisely the cash.

But these analysts forget that whatever shortfall the Thais might have on the moolah front, there’s plenty of it inside F&N. And the beauty of such a strategy is to use the cash or easily encashable assets within the target to pay for the takeover.

Once upon a time, this was the preferred strategy in most takeovers. Oh yes, for those too young to know, the offerors were often labelled “asset strippers.”

Today in a filing to the Singapore Exchange, ThaiBev said it along with TCC Assets will offer 8.88 Singapore dollars per share for all the F&N shares it doesn’t already own, pegging the company’s value at S$12.53 billion.

So once again, remember you first read how the beer and beverage battle would go in this blog. That tells you a lot about Auntie and a lot about the quality of SG professional investment analysts! 🙄

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2 thoughts on “Thais bid for F&N at $8.88: you read it here 1st

  1. Aunt Lucie,
    I must confess that I know next to nothing about shares and stock market. I don’t trade in shares at all. Absolutely no idea. I also got no interest at all.
    However, I’m a fan of Tiger Beer since the early 1980s. I always get myself a Tiger whenever I’m off duty or time forbids. The thing is I’m keen to know if our local icon Tiger will fall into Thai hands? If that is the case, Sg will be left with no beer icon. Every country had its own beer icon such Tsingtao for China, San Miguel for the Phillipines, Becks for Germany, Swan and Forster beer for Oz etc
    Sad to lose our beer icon. Pls enlighten me.

  2. Well, Uncle G: there’s nothing that’s going to last forever in this world, especially in a world where time and space are compressed by technology. Foster’s may b still be around as a brand, but CUB which brews it is a shadow of its former self. Fyi, Malayan Breweries, predecessor of APB, used to own a large slice of the Foster brewer. Ditto a large slice of Swan Breweries!

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