Heineken grabs majority stake in Tiger beer after raising offer

HEINEKEN is set to take control of the maker of Tiger beer after Singaporean drinks firm Fraser and Neave agreed to sell its stake for a total of 5.4bn Singapore dollars (£2.7bn) this weekend.

Fraser and Neave accepted an improved offer for its 40 per cent share of Asia Pacific Breweries (APB), which makes a number of brands popular in Asia. The deal will hand Heineken around 82 per cent of APB as it attempts to expand in Asia, triggering an automatic takeover bid from the Dutch firm.

Heineken’s offer was accepted after it was raised from 50 to 53 Singaporean dollars in the face of competition from Thai brewer ThaiBev. The takeover is still subject to shareholder approval.

Shares in Heineken fell on Friday over fears it may be paying too much for APB. The offer is over 1.5 times the one-month average of APB’s share price and reflects a price-to-earnings ratio of 35, one of the highest in the industry’s history.

Heineken’s chief executive Jean-Francois van Boxmeer said: “Our Asian headquarters will continue to be based in Singapore, and we remain 100 per cent committed to the growth and success of APB and the Tiger brand.”