F&N may spin off property business

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http://www.straitstimes.com/archive/...iness-20130629

F&N may spin off property business

Firm also to give investors cash of $3.28 a share from APB stake sale

Published on Jun 29, 2013

By Melissa Tan


CONGLOMERATE Fraser & Neave (F&N) may split its property arm from its other divisions, it said yesterday.

It told the Singapore Exchange that it would appoint advisers to look at what it could do to unlock shareholder value.

"This may involve a segregation of its property-related businesses from its non-property related businesses," the company said.

The market has long speculated that the group would be broken up to extract more value.

F&N, which is now chaired by Thai tycoon Charoen Sirivadhanabhakdi, said the board had made no decision on a restructuring.

It added that "any specific proposal or strategic option selected will be proceeded with only upon and subject to receipt of all relevant approvals. The board will keep the market appropriately informed of further material developments".

F&N's property arm includes real estate development, mall ownership and a serviced residence business.

The group also has a drinks and food business as well as a publishing unit.

On another front, F&N shareholders yesterday backed moves by the company to hand back some of the windfall it reaped when it sold stakes in Asia Pacific Breweries and other assets to Heineken last year.

Shareholders at an extraordinary general meeting yesterday overwhelmingly approved a cash distribution of $3.28 per share, with 100 per cent of votes in favour. The proposal required the backing of 75 per cent of those present.

TCC Assets and Thai Beverage - both controlled by Mr Charoen - together hold more than 90 per cent of F&N shares, so they will reap most of the payout.

The decision yesterday will result in the company paying out around $4.73 billion, given that there were just over 1.44 billion shares issued as of May 9.

This is about 84 per cent of the $5.6 billion the company collected by selling assets to Dutch brewing giant Heineken in a deal completed in November.

Just over 100 people attended the meeting, which lasted around 15 minutes, yesterday at the company's Alexandra Point premises.

The cash distribution requires the approval of the High Court, which F&N expects to obtain on July 15 with the payment date estimated to be around July 31.

Fraser & Neave shares closed two cents down at $8.58 yesterday.

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http://www.businesstimes.com.sg/arch...-soda-20130629

Published June 29, 2013

F&N looking at splitting brick and soda

By kenneth lim

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FRASER and Neave (F&N) may stop drinking and piledriving at the same time as it looks into a potential split of its property and non-property businesses, the conglomerate announced late yesterday.

Shareholders of the company at an extraordinary general meeting also unanimously approved a $3.28 per share capital distribution proposal to return part of the company's proceeds from its 2012 sale of its Asia Pacific Breweries interests.

F&N, which is now controlled by Thailand drinks group Thai Beverage Public Co's major shareholder, Charoen Sirivadhanabhakdi, said it will appoint advisers to study and review alternative strategic options available to the company to unlock shareholder value.

"This may involve a segregation of its property-related businesses from its non-property related businesses," the company announced. "No decision has yet been made by the board to proceed with any specific proposal or strategic option."

F&N is largely involved in property development and beverage sales. The company also has a minor publishing business.

Analysts have been expecting some kind of restructuring for F&N following Mr Charoen's takeover, which was completed this year with the Thai tycoon holding just over 90 per cent of F&N shares. Those shares are held by Mr Charoen's privately owned TCC Assets and by ThaiBev.

"The food and beverage (F&B) business and property arm of F&N are sizable players in their respective sectors and a spin-off or separation of the two will likely result in an overall lift in market valuations," DMG & Partners analyst Goh Han Peng said.

F&N shares eased two cents to close at $8.58 yesterday before the announcement. ThaiBev was unchanged at 59 cents.