June 11, 2023

DealBook: Heineken to Buy Stake in Asia Pacific Breweries for $4.1 Billion

Heineken offered to pay more than $4 billion for a stake in Asia Pacific Breweries, the maker of Tiger Beer.Mark Lennihan/Associated PressHeineken offered to pay more than $4 billion for a stake in Asia Pacific Breweries, the maker of Tiger Beer.

LONDON — Heineken extended its reach into Asia on Friday after the Dutch brewer agreed to buy a stake in one the region’s biggest brewers for roughly $4.1 billion.

Heineken, which already owns a 42 percent holding in Asia Pacific Breweries, will acquire a further 40 percent stake in the company from Fraser Neave, a Singapore-listed conglomerate and longstanding partner of Heineken’s in the region.

The deal underscores Heineken’s interest in fast-growing emerging markets.

Listed in Singapore, Asia Pacific Breweries operates 30 breweries across Asia, including in far-flung counties like Mongolia, Papua New Guinea and the Solomon Islands. Its brand portfolio includes Tiger Beer and Bintang lager, some of the best-known beers in the regional markets where they are sold.

Heineken previously said a successful deal would give it “direct access to a number of important markets, including Cambodia, China, Indonesia, Malaysia, New Zealand, Papua New Guinea, Singapore, Thailand and Vietnam.”

Larger global brewers are looking to deal-making as growth slows in their home markets.

In June, Anheuser-Busch InBev, whose beer brands include Budweiser and Stella Artois, agreed to buy the half of the Mexican brewer Grupo Modelo that it did not already own for $20.1 billion. Rival SABMiller bought Foster’s Group, the biggest beer company in Australia, for $10.15 billion last year.

Asia Pacific Breweries has been in play for weeks. Last month, Thai Beverage, controlled by the billionaire Charoen Sirivadhanabhakdi, initially offered to buy a 22 percent stake in Fraser Neave for $2.2 billion. Heineken countered in late July, offering to buy a 40 stake for roughly $4.1 billion. Heineken had set an Aug. 3 deadline for Fraser Neave’s board to accept its offer.

The agreement on Friday will trigger a requirement that Heineken make a mandatory buyout offer to remaining shareholders of the Asian brewer. The purchase of the remaining shares is expected to cost $1.9 billion. The deal is expected to close at the end of the year.

In early afternoon trading on Friday, shares in the European company rose 3.6 percent.

Credit Suisse and Citigroup advised Heineken on the deal.

Article source: http://dealbook.nytimes.com/2012/08/03/heineken-to-buy-stake-in-asia-pacific-breweries-for-4-1-billion/?partner=rss&emc=rss

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