Charoen ‘to reduce F&N stake’

SINGAPORE — Thai billionaire Charoen Sirivadhanabhakdi plans to pare his majority stake in Fraser and Neave (F&N) to keep the Singapore-based conglomerate listed and allow it to spin off property assets, people with knowledge of the matter said yesterday.

Mr Charoen intends to reduce his stake in F&N to about 87 to 88 per cent from 90.3 per cent currently. He won control of the 130-year-old real-estate-to-soft-drink company for S$13.8 billion in one of Asia’s largest takeovers this year in January.

The proposed share sale will allow F&N to meet the Singapore Exchange’s minimum public-float rules and proceed with plans to spin off its property arm, Frasers Centrepoint, by the end of this year. Representatives of Mr Charoen have sought out potential buyers, the people said.

F&N said in August that it plans to list Frasers Centrepoint separately on the SGX without raising any new capital. It will give existing shareholders two Frasers Centrepoint shares for each F&N share. Under SGX rules, large-cap companies seeking listings must have at least 12 per cent of shares held by public investors — defined as independent shareholders with stakes smaller than 5 per cent.

Mr Charoen’s plan allows Frasers Centrepoint to meet this because its public float will match that of its parent.

The sale also allows F&N to meet SGX rules requiring listed companies to maintain at least 10 per cent public ownership. The company has until Dec 31 to meet this requirement after the SGX granted extensions to earlier deadlines in April and July.

F&N hit the headlines in July last year as Mr Charoen — through his TCC Assets investment vehicle and Thai Beverage company — started building up his stake in the Singaporean conglomerate. At the time, F&N also had a brewing business that sold brands such as Tiger beer. The moves prompted F&N’s Dutch joint-venture partner, Heineken, to bid for the brewing business, acquiring it late last year for US$4.6 billion (S$5.7 billion).

Mr Charoen subsequently won control of F&N after a months-long takeover battle against OUE, a property developer controlled by Indonesia’s Riady family. DOW JONES