Thai billionaire Charoen Sirivadhanabhakdi, who was regarded as "the third wheel" in the deal Heineken acquired Tiger beer maker, has a history of making money by "fighting" with foreign brewers.
According to the Bloomberg financial news, Mr. Charoen is reapplying this strategy and his company has the ability to make much money when jumping on "blocking" the deal Heineken acquired APB, Tiger beer maker company.
In 2005, Charoen forced the brewery Carlsberg to pay $ 120 million to settle a legal dispute with the beer firm under his control. Last month, this billionaire launched a new war with Heineken around APB. The companies under the management of The Charoen proposed purchase of stocks of APB, the company is headquartered in Singapore, and Fraser & Neave (F&N), a company controlled 40% of APB.
The event that Charoen jumped to preclude the Heineken-Tiger deal has made his relatives rich. The "chubby break" of this billionaire forced Heineken, the Dutch company, have rushed out a bid of 7,5 billion Singapore dollars ($ 6 billion), equivalent to 50 Singapore dollars/ stock, to have the entire remaining stocks of APB. A few days ago, the company of Charoen's son-in-law has offered a bid of 55 Singapore dollars/ stock to F&N ceded 7.3% stake in APB.
"This is a smart move by the Thai billionaire. I think that the latest proposed acquisition from Charoen will force Heineken to make a higher bid", analyst Goh Han Peng of DMG & Partners Securities company said.
This price war has increased the value of shares held by Charoen's son-in-law of APB by about 134 million dollars because it has forced the stock prices of firms in the market to increase. Cash flow to this family will increase if Heineken increase bid or F & N sell other parts of the company.
Analyst Gregory Lui of Deutsche Bank estimates that the sale of APB prices 50 dollar Singapore/ stock can give F&N and the shareholders of this company amounts slightly larger and special dividend 2,71 Singapore dollars / stock. With about 24% stake in F&N, Thai Beverage companies of Charoen will earn about $ 742 million.
In the previous war with the Danish brewer Carlsberg, Charoen originally even required this opponent to pay damages in the amount of up to $ 2 billion. Charoen claimed after Carlsberg had terminated a joint venture with the brewing company which he controlled.
Recently, not only to make money from Tiger, but also Charoen wants to make money from Bintang, a top-selling beverage in Indonesia. These efforts of Charoen show the attraction of the South East Asian market for beer firms.
Before Heineken bid for the remaining shares in APB, on 18 July, Thai Beverage company of Charoen recently agreed to acquire a 22% stake in F&N from bank Oversea-Chinese Banking Corp (OCBC), based in Singapore. Some close sources said negotiations between Thai Beverage and OCBC promoted in July, after Thai Beverage expressed intention to invest in F&N over 1 year ago.
Also on 18 July, Kindest Place Groups, a company under the control of Charoen's son-in-law - Chotiphat Bijananda agreed with OCBC acquired a 9% stake in APB. Two days later, Heineken responded with a greeting to buy 7,5 billion Singapore dollars for APB. Last week, the Board of Directors of F&N had proposed the deal to its shareholders.
Founded in 1931, APB have more than 40 different brands of beer, including Tiger beer is available in 60 countries around the world. In addition, APB have also distributed Heineken beer in many markets, from Indonesia to China. APB's profit rose 19% to $ 218 million Singapore dollars in the six months ended in this March.
Billionaire Charoen, 68 years old, born and raised in the Chinese district in Bangkok after his parents had moved here from Son Dau, China. His business activities have spanned many areas, from beverages to insurance, real estate. Based on a 70% stake Charoen hold in the Berli Jucker Public Company and his 66% stake in Thai Beverage, Bloomberg estimated property values by shares of Charoen about $ 5.9 billion.
The year 2011, Thai Beverage had revenue of 132 billion baht, equivalent to $ 4,2 billion, of which only 3,7% of revenue from overseas markets.
In addition to stocks of beer at APB, F&N also has properties in the array of soft drinks and real estate. According to analysts, these assets could attract the attention of the other potential buyers when this company sold beer shares. Charoen can benefit from splitting F&N after the company sold beer shares.
"In addition to earning money, they can look at and have first choice for the assets of F&N that they want to buy," Jonathan Foster, a director of the investment firm Religare Capital Markets, said.
According to VnEconomy