Dutch brewer Hieneken has 82% stake in Singapore-based Asia Pacific Brewery (ABP), owners of Tiger Beer, according to a report in Drinks Business.com last week. Fellow investor Fraser & Neave had agreed to sell its share in Asia Pacific Brewery to Heineken for £2.7 billion.
This amount was expected to go up to S$ 6 million once they came to an agreement with other shareholders. Heineken, however, was forced to increase its original bid from 50 to 53 Singaporean dollars per share after rising offers from its chief rival Thai Bev.
With this deal coming through, Heineken now has complete control over the 24 breweries of ABP that are spread across 14 countries. The news of the control coming into the hands of Heineken has pushed the breweries’ share price to 46.30 euros.
Nonetheless, F&N agreed to hand over its 40% share in APB this weekend although the transaction is still subject to shareholder approval.
Shares in Heineken fell last Friday as fears rose that it would end up paying too much for APB – this comes in contrast to the rise in shares a few weeks ago when it appeared its original offer would be accepted.
City A.M. reported that the final price of S$53 is 1.5 times the one-month average of APB’s shares.