- According
to a Bloomberg article, US-based Coca-Cola Co. is exploring a bid for Fraser
& Neave Ltd’s (F&NL) dairy and soft-drinks businesses.
- Though no
formal proposal has been made by Coca-Cola Co., the group is believed to be keen
and is monitoring potential M&A actions by other suitors, especially
Japan-based Kirin Holdings Co. which owns a 15% interest in F&NL.
- F&NL
owns 56.3% equity stake in Fraser & Neave Holdings (F&NH). Based on the
last closing price, F&NH has a market capitalisation of RM6.9bil.
- F&NH
is essentially F&NL’s non-alcoholic F&B arm. As at 1QFY12, soft drinks
accounted for 77% of F&NH’s group EBIT while dairy operations made up the
balance of 23%. However, F&NH’s 13 acre property development project in
Petaling Jaya, Selangor with an estimated GDV of over RM1.3bil is expected to
start contributing to group earnings from mid-2013 onwards.
- The
article also cited a different source highlighting that a proposal by Coca-Cola
Co. may be dependent on roping in a partner to take in F&NH’s line of
tonics and mixers. Within the soft drinks division, F&NH’s star performers
include its proprietary 100Plus isotonic drink, range of Asian still drinks and
FruitTree juices.
- Meanwhile,
Thai Beverage Limited (ThaiBev) had boosted its stake in F&NL from 22% to 24.1%
via open market purchases since obtaining a waiver on 31 August from SGX to
hold an EGM on its recent acquisition from Oversea-Chinese Banking Corporation
Ltd (OCBC) and partners.
- Separately,
F&NL is expected to respond to Heineken NV’s SGD5.1bil defensive bid for
full control of its 40%-owned Asia Pacific Breweries (APB Sp Equity, Non-rated)
by tomorrow.
- No change
to our Hold rating on F&N with a DCF-based fair value of RM18.10/share, pending
further developments.
Source: AmeSecurities
No comments:
Post a Comment