Charoen takes reins of F&N; plans Chang breweries in Myanmar

Charoen Sirivadhanabhakdi has taken control of Singapore's Fraser and Neave, fulfilling his strategic expansion into the food-and-beverage and property markets of Southeast Asia, which is booming in comparison with other regions.

Charoen is expected to appoint directors to F&N's board and send a new management team soon, to start the know-how exchange with F&N executives.

As of Monday, Charoen's business arm, TCC Assets, had bought another 4.1 million shares in F&N, in effect boosting the Thai tycoon's stake in the Singaporean food-and-property conglomerate to 74 per cent. According to the filing to the Singapore Exchange, as of 5pm on that day, Charoen's group - led by Thai Beverage and TCC Assets - owned 1.07 billion shares in F&N.

F&N's share price was 9.43 Singapore dollars yesterday, slightly lower than Charoen's S$9.55 bid price, which values F&N at US$11.2 billion (about Bt3.36 trillion).

As Charoen looks set to take control of F&N, which has a presence in more than 20 countries in Asia and the Pacific, he is expanding his operations in Myanmar.

The Myanmar Investment Commission has given the green light for Thai Beverage to open Chang Beer breweries and other beverage factories in the Yangon and Mandalay regions, as well as in Shan state, sources said.

The sources said permission was granted at the end of last month and that Beer Chang International Ltd had formed a joint venture with Myanmar Distillery Ltd to operate the factories. Restrictive policies on the import of beer, alcohol and cigarettes have been a boon to the black market, officials say.

In a related development, Property Perfect chief executive officer Chainid Ngow-Sirimanee, a major shareholder of Krungthep Land, which is 40 per cent owned by F&N, said Krungthep Land's management would hold discussions with Charoen's group on business policy after the F&N takeover deal is final.