The Business Times
business-time-50
MARK TO MARKET

Should ThaiBev’s minority shareholders support the proposed FPL-F&N share swap?

FPL and F&N are plainly undervalued, but ascribing a precise fair value to a company can be tricky

google-preferred-sourceAdd BT as a preferred source
Ben Paul

Ben Paul

Published Mon, Aug 5, 2024 · 05:00 AM
    • The valuation accorded to F&N under the deal is 232% above its last closing price, while the valuation accorded to FPL is 136% above its last closing price.
    • The valuation accorded to F&N under the deal is 232% above its last closing price, while the valuation accorded to FPL is 136% above its last closing price. PHOTO: BT FILE

    WHILE this column was on a hiatus last month, Thai Beverage (ThaiBev) unveiled a proposal to offload its entire interest in Frasers Property (FPL) and increase its stake in Fraser and Neave (F&N).

    The deal will turn ThaiBev into a more focused beverage and food group, and is expected to be immediately accretive to its earnings.

    Yet, minority shareholders of ThaiBev may have misgivings about the significantly higher premium to market price at which the company is receiving F&N shares under the deal versus the FPL shares it is parting with.

    BT CorrespondentsThai BeverageF&Nfrasers propertyM&ACorporate deals

    TRENDING NOW

    Eugene Lai (left) says that he was sharing a view with Tan Chian Khong that the board needed a refresh and that it was not an explicit direction to resign.

    CSE Global independent director quits after clashes with chairman Eugene Lai over board refresh

    In the last round of bidding, the premium for Category B was S$980 more than that for Category A.

    Cat A COE rate exceeds Cat B for third time in 4 months; premiums largely down

    Some industry watchers wonder if Orchard Road can hold its own next to competing retail destinations, both global and local.

    What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future

    Those whose employers actively discourage the use of AI at work have the lowest mental health score.

    Singapore workers experiencing rising anxiety; signs of fallout from pressure to use AI

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More