M&As hot property in Singapore

Singapore based Fraser and Neave (F&N), the company behind a plethora of high-end residential developments such as eCO, Palm Isles, Twin Waterfalls, Boathouse Residence, Eight Courtyards and Flamingo Valley has found itself in the midst of a bidding battle with companies from Thailand, Japan and Singapore drawing their swords for the property and drinks company.

The takeover bid has attracted quite a bit of attention over the past few weeks and it now seems the competition is heating up between Singapore property firm Overseas Union Enterprise Ltd (OUE) and Thai billionaire Charoen Sirivadhanabhadki, chairman of the Executive Board of Group of TCC Company Limited, both of which are already shareholders.

The property consortium made a counter bid to TCC’s S$8.88 (US$7.23) per share offer, confronting the billionaire with a bid worth S$13.1 billion (US$10.7 billion), or S$9.08 (US$7.4) per share. Sirivadhanabhadki has now extended his offer until the 10th January, however, rumours are circulating that the battle won’t be settled until mid-January with Japanese brewer Kirin Holdings – F&N’s second-largest shareholder having offered its support to OUE by offering S$2.7 billion (US$2.1 billion) if its bid is a success.

Mergers and Acquisitions’ deal value in Singapore experienced a significant uptick of 176.5 percent y-o-y in 2012. With the F&N activity, it seems that this year is setting off on the right foot in the lion state after a stellar year in M&A volume throughout South East Asia as a whole, which  posted its biggest ever growth, up 36.6 percent y-o-y to US$97billion, despite a more disappointing year in other parts of the Asia Pacific region.

With a diverse portfolio, it’s no wonder that F&N is attracting so much attention. The firm has a few new launches in the pipeline, such as its bungalows at Holland Park, Q Bay Residences in Tampines and its Woodlands EC.

Who will win? It’s hard to tell, but analysts see major cross-border M&A moves as a positive sign so early in the year and many anticipate significant growth after the restructuring.


Filed Under: JapanNewsSingaporeThailand


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