Skip to main content

Advertisement

Advertisement

F&N to list property business, focus on F&B

SINGAPORE — Fraser and Neave (F&N) plans to spin off its property business through a listing later this year as the company puts greater focus on its food and beverage business, the conglomerate said yesterday.

SINGAPORE — Fraser and Neave (F&N) plans to spin off its property business through a listing later this year as the company puts greater focus on its food and beverage business, the conglomerate said yesterday.

The property arm, Frasers Centrepoint Limited (FCL), is expected to list separately on the Singapore Exchange mainboard in November or December, after which F&N will no longer hold any interest in FCL. Shareholders of F&N will be offered two FCL shares for every F&N share they own at no cost. The listing, by way of introduction, will raise no new funds.

“It provides sharper focus on the growth of the food and beverage and properties businesses as independently-listed entities and paves the way for further growth in both sectors,” F&N said in a statement.

The announcement comes after Thai tycoon Charoen Sirivadhanabhakdi won control over F&N in January in a deal worth S$14 billion. His companies Thai Beverage and TCC Assets currently hold 28.6 per cent and 61.7 per cent stake in F&N, respectively.

The FCL listing is subject to shareholder and regulatory approval. TCC said it would vote in favour of the in-specie distribution. FCL Group Chief Executive Lim Ee Seng said: “The listing will enhance FCL’s profile, and enable us to pursue our growth strategies independently.”

The group plans to enhance its residential and commercial property development in Singapore, China and Australia. It is also exploring opportunities to work closer with its majority stakeholder TCC.

Said Mr Lim: “We are in talks with TCC to acquire selected TCC-owned hotels outside Thailand for the hospitality REIT that we are considering.”

Other plans in discussion include taking over the management of TCC assets outside Thailand, as well as property development opportunities in Thailand.

F&N, on the other hand, aims to strengthen its beverage distribution networks and product development in the region through strategic partnerships. In particular, it will focus on its current core markets of Singapore, Malaysia and Thailand, and expand into new markets such as Indonesia, Vietnam, Cambodia and Laos.

F&N also confirmed yesterday that it was considering the listing of a hospitality real estate investment trust on the Singapore Exchange, as reported by TODAY early last month.

F&N said that no decision had been made as to whether the transaction will take place, as well as the timing, offering size and the assets to be included in such a REIT.

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.