Search Here

Singapore-based Overseas Union Enterprise (OUE) has made a record $12.7 billion bid for Fraser & Neave, a leading Pan-Asian consumer group with major interests in food & beverage (F&B), property, publishing and printing businesses. The OUE offer, which outbid a $12.2 billion offer by Thai Beverage Public Company, has been assessed by Dealogic as the largest Southeast Asian M&A transaction on record.

According to Dealogic's Quickstats, the deal is also the biggest Asia (ex. Japan)-targeted M&A transaction in 2012 YTD. Moreover, it pushes Southeast Asia-targeted M&A volume to $93.3 billion in 2012 YTD, up 54 percent year-on-year ($60.2 billion), and higher than all previous full year levels. Southeast Asia accounts for 26 percent of Asia (ex. Japan) M&A volume in 2012 YTD, up from 18 percent in 2011 YTD and marks the highest YTD level since 2001 (39 percent share). At the same time, Asia (ex. Japan)-targeted M&A volume has gone up 5 percent year-on-year to $357.1bn in 2012 YTD, the highest YTD volume on record.

OUE interest in F&N is governed by its diversification drive. The company has branched into retail, commercial and residential developments. Over the last four decades, it has developed and managed landmark properties at prime locations in Singapore and across the region. OUE's assets include the Crowne Plaza Changi Airport Hotel, OUE Bayfront, One Raffles Place and DBS Building Towers One and Two. The company also owns the Mandarin Orchard Singapore and Mandarin Gallery.

Commenting on the offer to F&N, Dr Stephen Riady, Executive Chairman of OEU, said in a company statement that "F&N is a pan-Asian consumer group with strong standing in property, F&B, publishing & printing industries. Its property portfolio would be highly complementary to OUE's existing property portfolio."

Dr Riady observed that "combining both will further strengthen OUE as a leading property player in Singapore and expand our footprint in Singapore and regionally." He also said that "with a successfully track record in developing iconic properties in Singapore we intend to enhance F&N's properties with our expertise in property development and management."

Credit Suisse, Bank of America Merrill Lynch and CIMB are the advisors for the deal.