Might be the conclusion of the strategic review
http://www.businessweek.com/news/2013-08...-beverages
Fraser & Neave Ltd. (FNN), controlled by Thailand’s richest man, is planning to separate its property business from operations including beverages and publishing, said two people with knowledge of the matter.
The 130-year-old conglomerate will split into two separate listed entities, said the people, who asked not to be identified before an announcement expected today. The company said earlier today in a stock exchange statement it plans to announce “an important corporate development.”
F&N said in June it’s considering a property business spinoff to increase value, and is appointing advisers to study options. The move follows the S$13.8 billion ($10.7 billion) takeover by Thai billionaire Charoen Sirivadhanabhakdi of the company whose businesses range from selling dairy products to developing shopping malls.
“It’s a good move because historically, there has been a holding company discount on the group because of the combined businesses of property and non-property,” Goh Han Peng, an analyst at DMG & Partners Securities Pte in Singapore, said. “By separating them, the individual businesses can be valued separately and the food and beverage can obtain the full valuation that they deserve.”
F&N said in an e-mailed statement it declined to comment on the report. The stock has fallen 43 percent this year and last traded at about S$5.49 before the trading halt.
The company said earlier this month it’s considering setting up a real estate investment trust made up of its hospitality assets. It has received proposals from investment banks in relation to the IPO, though considerations are at a preliminary stage, F&N said.
Charoen, who acquired F&N through his company Thai Beverage Pcl (THBEV), has a net worth of $7.2 billion, according to the Bloomberg Billionaires Index.
To contact the reporters on this story: Joyce Koh in Singapore at jkoh38@bloomberg.net; Pooja Thakur in Singapore at pthakur@bloomberg.net
To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net
http://www.straitstimes.com/breaking-new...s-20130827
every 1 lot of FNN we get 2 lots of FCL ...
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Market was only expecting a $500m REIT announcement but this restructure is big money. TCC really milking it for all its worth 