Thai Beverage, the largest brewer in Southeast Asia, has announced a strategic move to divest its real estate assets and transition into a focused drinks and food company through a share swap arrangement with affiliated companies owned by billionaire Charoen Sirivadhanabhakdi.
As part of the exchange, ThaiBev, renowned for brands like Chang beer and Grand Royal whisky, will transfer its 28.8% stake in Frasers Property Ltd (FPL) to TCC Assets, a property firm under the Sirivadhanabhakdi family’s control. In return, TCC Assets will transfer an equivalent value of shares in Fraser and Neave (F&N) to ThaiBev, significantly increasing its ownership in F&N.
This proposed share swap aims to streamline the businesses and the family’s shareholding structure, with no disruption anticipated in the operations, as internal communications to Frasers Property Thailand staff have indicated. ThaiBev believes that refocusing on a pure-play beverage and food business by exiting real estate investments could lead to a re-evaluation in line with industry peers.
The transaction values F&N at approximately S$3.9 billion and Frasers Property at about S$7.4 billion. The company plans to seek approval from its shareholders for the share swap through an extraordinary general meeting, with support from financial advisor DBS.
Panote Sirivadhanabhakdi, FPL’s CEO and Charoen’s youngest son, reassured Frasers Property Thailand staff that the swap is aimed at refining the businesses’ focus and will not affect their operations, according to an internal memo.
