ThaiBev seeks 'right time' to address FCL stake

Singapore

DRINKS maker Thai Beverage Public Co is waiting for the right time to address its substantial but non-core stake in property company Frasers Centrepoint Ltd (FCL), ThaiBev chief executive Thapana Sirivadhanabhakdi said on Friday.

The company also plans to ramp up marketing and promotion efforts in its non-alcoholic beverage business, and continues to be open to acquisition opportunities, Mr Thapana told reporters at a briefing.

ThaiBev indirectly holds a 29 per cent stake in FCL as a result of a complex series of transactions related to the 2013 acquisition of Fraser and Neave (F&N) by the group of companies controlled by ThaiBev chairman Charoen Sirivadhanabhakdi, who is also the CEO's father.

Mr Thapana said ThaiBev wants to be focused purely on the food and beverage business, but said decisions about what to do with the FCL stake have to first address a number of issues.

"We're talking about fair valuation because as ThaiBev, we have to protect the interests of the minority shareholders," he said. "We're looking to the right time. When it comes, we should be focused on the beverage."

Notwithstanding all the technical issues related to the ownership structure of ThaiBev and its various units, the company is focused on achieving its stated goals of making more than half of its revenue from non-alcoholic beverages and from outside Thailand by 2020.

"In terms of integration there are sensitivities in terms of how the legal entities can be put under here or there," Mr Thapana said. "I think let's put that aside for a moment. I think it's more important how we can collaborate and work together as a true partner."

That collaboration is evident in F&N recently launching its flagship 100Plus drink brand in Thailand while ThaiBev's Oishi unit launched its green tea product in Singapore.

"100Plus we first launched in February, and we were able to excite the market," Mr Thapana said, adding that the company is positioning the drink as a healthier carbonated soft drink.

Marketing and promotion will be a major priority for the non-alcoholic beverages business. "We're still in the investment mode," he said.

Mr Thapana declined to comment specifically on Vietnamese brewer Saigon Beer Alcohol Beverage, in which ThaiBev is believed to be interested in acquiring a stake. But he said ThaiBev remains open to companies that have a "strong brand and strong distribution network".

"We always keep our eyes open," he said.