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! 🙄