Battle over Fraser & Neave prolonged as consortium extends offer deadline

A group led by Overseas Union Enterprise extended a deadline for a S$13.1 billion (HK$83.16 billion) bid for Fraser & Neave, prolonging its battle with a Thai billionaire for control of the Singapore conglomerate.

The OUE-led group pushed back the date on its S$9.08-per-share bid to January 14, according to a stock exchange statement yesterday. Thai billionaire Charoen Sirivadhanabhakdi on Wednesday moved the closing date on his S$8.88-per-share offer until January 10.

Charoen agreed to buy a 22 per cent stake in F&N in July, setting off a fight for the company's soft-drink and property assets and prompting the sale of its beer unit to Heineken. F&N shares have traded above both offers in a sign that investors expect the bidding war to escalate.

OUE, a Singapore-based property company, has enlisted Kirin, Japan's largest drinks maker, in its bid. OUE would get the company's property business and Kirin would take the food and beverage unit.

Kirin has agreed to tender its 14.8 per cent stake in F&N, OUE has said. The Japanese brewer, Asia's biggest beverage maker, will offer S$2.7 billion for F&N's food and beverage business, if OUE wins enough support to complete the takeover.

F&N has said it had committed to pay the OUE consortium a break-up fee of as much as S$50 million if a competing offer were successful.