SINGAPORE: A consortium led by property group Overseas Union Enterprise (OUE) has set a deadline for its takeover offer of conglomerate Fraser and Neave (F&N).
Its S$13.1 billion offer for F&N will close on 3 January.
OUE is controlled by Lippo Group, a major Indonesian conglomerate that was founded by tycoon Mochtar Riady. Mr Mochtar is father of OUE's executive chairman Stephen Riady.
The OUE-led consortium offered to buy out shares of F&N at S$9.08 a piece on 15 November.
It is backed by Japanese brewer Kirin Holdings, which holds a 14.8 per cent stake in F&N. Kirin is also F&N's second largest shareholder.
OUE's offer was 2.25 per cent higher than the S$8.88 per share offered by rival TCC Assets, which is controlled by Thai beverage tycoon Charoen Sirivadhanabhakdi.
Through his entities TCC and Thai Beverage, he now owns almost a third of F&N.
TCC's S$8.7 billion bid for F&N will close on 11 December.
Analysts expect both sides to battle it out for F&N given the attractiveness of its property and soft drinks business.
They say TCC, which has extended the deadline on its offer twice, could ask for yet another extension next Tuesday before making their next move.
Liu Jinshu, deputy lead analyst at SIAS Research said: "TCC can't drag this out over a prolonged period, with the OUE bid announced last month, there is pressure for them to raise the stake.
"The premium offered by OUE's offer at S$9.08 a share is not high. TCC might not find it attractive after they have invested so much resources and effort in F&N. There is potential for TCC to rope in a partner and put in a higher bid for F&N."
F&N's share price closed at S$9.39 on Thursday, leading analysts to say that shareholders are holding out for a better offer and that a bidding war could emerge.
"We are seeing steady level being held at around the S$9.40-S$9.50 share mark on the exchange traded share. At the moment we are waiting to see who would move first in terms of putting in a better offer… I think we are likely to see both sides improve before we actually get to the end of any takeover," said Head of Premium Client Management at IG Markets Jason Hughes.
F&N is expected to appoint an independent financial advisor to review OUE's offer.
- CNA/jc
OUE sets deadline for F&N takeover offer
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OUE sets deadline for F&N takeover offer
