SINGAPORE--Japanese beverage group Kirin Holdings Co. Ltd.
(2503.TO) is considering a bid for the soft drinks and dairy assets
of Singapore conglomerate Fraser & Neave Ltd. (F99.SG), a
person familiar with the situation said Thursday.
The Japanese group is considering a bid for the conglomerate's
Malaysian unit, Fraser & Neave Holdings Bhd. (3689.KU) and
brands such as isotonic drink 100 Plus, Seasons and Fruit Tree, the
person said.
Kirin already owns a 15% stake in Fraser & Neave, which it
acquired from Singapore state investment firm Temasek Holdings in
2010.
The planned move follows Heineken NV's (HINKY) 5.1 billion
Singapore dollar (US$4.1 billion) offer last week to buy out Fraser
& Neave's stake in Asia Pacific Breweries Ltd. (A46.SG), a
joint venture between the Dutch brewer and Singapore company that
produces Tiger beer.
"Kirin wants to ride on the current momentum," the person said,
adding a potential bid for Asia Pacific Breweries could be
complicated.
The person also said the market capitalization for the soft
drinks business is around US$2 billion and that funding the
acquisition could be easily achieved.
A Fraser & Neave spokeswoman declined to comment. A Kirin
spokesman declined to comment.
Kirin has been weighing various options after Heineken's bid
last week to take control of Asia Pacific Breweries. People
familiar with the matter told Dow Jones Newswires Monday Kirin, one
of Japan's biggest brewers, is in early discussions with bankers
about a potential bid for Asia Pacific Breweries.
Asia Pacific Breweries has a strong presence in countries such
as Singapore, Malaysia, Indonesia and Vietnam; Kirin is looking to
expand beyond its domestic market, where the company's sales are
slipping.
Still Kirin -- the second-largest Japanese brewer by domestic
market share, after Asahi Group Holdings Ltd. -- already has spent
more than 1 trillion yen (US$12.74 billion) on overseas
acquisitions since 2007.
Apart from buying a stake in San Miguel, Kirin last year bought
Schincariol, a Brazilian brewer, for $3.9 billion.
Write to P.R. Venkat at venkat.pr@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires