ThaiBev exits real estate sector in share swap deal 

THAILAND – Thai Beverage (ThaiBev), Southeast Asia’s largest brewer, has announced its plans to concentrate exclusively on the food and beverage sector.

The company, known for its Chang beer and Grand Royal whisky brands, will divest its real estate assets in a share swap deal with other companies owned by Thai investor Charoen Sirivadhanabhakdi. 

As part of this agreement, ThaiBev will transfer its 28.8 percent stake in Singapore’s Frasers Property, valued at approximately US$1.6 billion, to the property firm TCC Assets.  

In return, TCC Assets will transfer shares in Singapore food and beverage firm Fraser and Neave (F&N) to ThaiBev. This move will increase ThaiBev’s ownership in F&N from about 28 percent to nearly 70 percent upon completion of the deal. 

The proposed share swap will be executed at a ratio of approximately 1.88 Frasers Property Limited (FPL) shares for each F&N share. This ratio was determined based on a negotiated price of US$1.89 per FPL share and US$3.55 per F&N share. 

ThaiBev initially acquired a 22 percent stake in F&N in 2012 for US$2.21 billion and has incrementally increased its stake in the years that followed.  

The company now aims to solidify its presence in the Asian beer market by gaining a majority ownership in rival Tiger beer through this transaction. 

ThaiBev stated, “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.” 

The deal values F&N at around S$5.2 billion (US$3.9 billion) and Frasers Property at approximately S$7.4 billion. ThaiBev will seek shareholder approval for the transaction at an extraordinary general meeting. 

In addition to this strategic shift, ThaiBev has strengthened its market presence over the years by acquiring stakes in Grand Royal Group, Myanmar’s largest whisky operator, and Saigon Beer-Alcohol-Beverage Corporation (SABECO), Vietnam’s largest brewer. 

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