Heineken to Buy Asia Pacific Breweries for S$5.6 Billion

Heineken International B.V. enters deal with Fraser and Neave for their controlling stake in Asia Pacific Breweries
 Heineken to Buy Asia Pacific Breweries for S$5.6 Billio..

Worldwide brewing company Heineken is big business, and all signs point to the fact that it’s only going to keep getting bigger. Today it was announced that the business has entered into a deal with consumer group Fraser and Neave, purchasing F&N’s stake in Singapore-based Asia Pacific Breweries for the hefty sum of S$5.6 billion (or $4.5 billion USD).

According to Beverage Daily, the deal consists primarily of F&N’s 39.7 percent stake in Asia Pacific Breweries at the agreed-upon rate of S$5.4 billion or S$53 per share, plus an additional S$163 million for other assets currently held by Asia Pacific Investment. Heineken chairman and CEO Jean François van Boxmeer released a statement regarding the deal, which reads:


“I am pleased that F&N’s Board has agreed that our increased offer, which is now final, represents excellent value for F&N and APB shareholders. I would like to thank Chairman Lee for the role he had played in securing this important agreement.”


Heineken is no newcomer to Asia Pacific Breweries – at the moment, the company reportedly already owns a 32.4 percent stake. But this new deal puts them well over the majority with an 81.6 percent interest. Beverage Daily notes that such a majority holding triggers a mandatory general offer for all remaining shares in the company which would allow Heineken to own all of Asia Pacific Breweries outright for the added cost of $2.5 billion. With this deal, Heineken International will be able to add brands like Tiger beer, Anchor beer, Bintang beer, and Baron’s Strong Brew to its stable along with other big international names like Amstel, Newcastle Brown Ale, and Indio.

The transaction between Heineken and Fraser and Neave is expected to be complete by no later than December 15, 2012.


[SOURCE: Beverage Daily]

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