ThaiBev wins S$2.8bn loan facility
Thai Beverage Plc on August 3 has won a 2.8 billion Singapore dollar loan facility from three international banks, to finance the acquisition of a 22 per cent stake in Singapore-based Fraser & Neave (F&N).
Through its wholly-owned subsidiary, International Beverage Holdings Ltd, ThaiBev entered into a facility agreement with Hongkong and Shanghai Banking
Corp, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.
In a statement posted on its web site on August 4, ThaiBev said "the proceeds of the bridge facility will be entirely used to finance the proposed investment
and transaction expenses in connection with the proposed investment and the bridge facility."
On July 18, ThaiBev entered into a share sale and purchase agreement with Oversea-Chinese Banking Corp, Great Eastern Holdings and Lee Rubber for the purchase of 313 million shares of F&N, at S$8.8 apiece or a total of S$2.8 billion. F&N has a sizeable stake in Asia Pacific Breweries, a major Asian brewer which is very likely to be taken over by Dutch giant, Heineken.
The loan facility confirmed that ThaiBev would not drop its bid for F&N, despite Heinekenâ€™s offer for the entire stake of F&N in Asia Pacific Breweries.