FRASER & Neave, a Singapore- based conglomerate, plans to distribute to shareholders about four billion Singapore dollars (€2.55 billion) of the proceeds from the sale of its stake in Asia Pacific Breweries (APB).
F&N, which agreed to sell its stake in the brewer of Tiger beer to Heineken last week, will effect the cash return of about 84 per cent of the sale proceeds through a proposed capital reduction, it said late yesterday in a statement to the Singapore Stock Exchange.
Heineken agreed to buy F&N’s 40 per cent stake in Tiger beer brewer APB for S$53 per share, or S$5.4 billion. FN said proceeds from the disposal after transaction costs would be S$4.8 billion, and it would use the remainder after the distribution to shareholders to pay back debt and strengthen its balance sheet.
F&N will cancel one share for every three shares held, it said, and make a cash distribution of S$8.50 for each share cancelled.
Heineken and F&N have controlled Singapore-based APB through a joint venture since 1931, selling beers including Heineken across southeast Asia. Heineken’s bid is subject to approval by FN shareholders. – (Bloomberg)
