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ThaiBev plans to divest its property assets through a share swap deal to streamline its operations and concentrate on its core beverage business. This strategic move aims to enhance efficiency and optimize resource allocation within the company. By shedding non-core assets, ThaiBev intends to strengthen its market position and focus on its primary industry, ensuring long-term growth and profitability. The share swap deal is expected to bring significant benefits to the company and its stakeholders.
Thai Beverage (TBEV.SI), Southeast Asia's largest brewer, plans to divest its real estate assets and focus solely on drinks and food through a share swap with companies owned by tycoon Charoen Sirivadhanabhakdi.
Under the agreement, ThaiBev, which owns brands like Chang beer and Grand Royal whisky, will transfer its 28.8% stake in Singapore-based Frasers Property (FRPL.SI), valued at approximately $1.6 billion, to property firm TCC Assets.
In exchange, TCC Assets will transfer shares of equivalent value in Singapore drinks and food firm Fraser and Neave (FRNM.SI) (F&N) to ThaiBev. As a result, ThaiBev's ownership of F&N will increase from around 28% to just under 70%.
"Streamlining the company's focus towards a pure-play beverage and food business by exiting the property business and increasing its exposure to non-alcoholic beverages and dairy could result in a potential re-rating in line with pure-play beverage and food peers," ThaiBev stated.
The deal values F&N at about S$5.2 billion ($3.9 billion) and Frasers Property at approximately S$7.4 billion.
Shares in F&N surged 26% to S$1.35, while those in Frasers Property rose 5.6% to S$0.85. ThaiBev's stock is currently on a trading halt.
ThaiBev announced it will seek approval from its shareholders for the proposed share swap at an upcoming extraordinary general meeting.
DBS (DBSM.SI) is serving as ThaiBev's financial adviser for the transaction.
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Source: Reuters
