ThaiBev plans to shed property assets in share swap deal By Reuters

By Yantoultra Ngui and Rishav Chatterjee

(Reuters) -Thai Beverage, Southeast Asia’s biggest brewer, plans to divest its real estate assets and become a pure-play drinks and food firm in a share swap with other companies held by its owner, tycoon Charoen Sirivadhanabhakdi.

Under the deal, ThaiBev, the owner of brands such as Chang beer and Grand Royal whisky, will transfer its 28.8% stake in Singapore-based Frasers Property, worth roughly $1.6 billion based on the negotiated price, to property firm TCC Assets.

In return, TCC Assets will transfer over shares worth roughly the amount in Singapore drinks and food firm Fraser and Neave (F&N). ThaiBev’s ownership of F&N will jump to just under 70% from around 28% upon completion of the deal.

“Streamlining the company’s focus towards a pure-play beverage and food business by exiting the property business and increasing its exposure to non-alcoholic beverages and dairy could result in a potential re-rating in line with pure-play beverage and food peers,” ThaiBev said in a statement.

The deal values F&N at around S$5.2 billion ($3.9 billion)and Frasers Property at about S$7.4 billion.

Shares in F&N surged 26% to S$1.35, while those in Frasers Property climbed 5.6% to S$0.85. ThaiBev’s stock was on a trading halt.

ThaiBev said it will be seeking approval from its shareholders for the proposed share swap at an extraordinary general meeting in due course.

DBS is acting as ThaiBev’s financial adviser.

($1 = 1.3404 Singapore dollars)