F&N Fraser & Neave Holdings Bhd Profile

Fraser & Neave Holdings Bhd's principal activities are that of investment holding and the provision of management services. Its subsidiary companies are primarily engaged in the manufacture and sale of glass containers, soft drinks, and dairy products, property development activities and the provision of management services.

My Notes

F&N is food industry related. Usually food counters are considered safe counters for investing as they seldom face severe fluctuation. However F&N seemed to be having a tussle for control between the Singapore and Malaysia section.

I'm considering to invest in this counter, and according to my remisier, in the long-term once the dust settle and whichever way the control goes, it will be good for the company. So now waiting to accumulate my funds before making my next move.

News Info


KUALA LUMPUR (Jan 24, 2013): Fraser & Neave Holdings Bhd (FNH) said it has not yet seen any impact from the battle for control of its Singapore-listed parent Fraser & Neave Ltd (F&N) on its operations here, but is continuing to monitor the situation.

F&N owns a 56.5% stake in FNH.

"We are monitoring developments relating to the corporate exercise. FNH is unable to comment on the situation and its impact for now," FNH CEO Datuk Ng Jui Sia told reporters after the group's AGM here yesterday.

It was reported that the investment vehicle owned by Thai billionaire Charoen Sirivadhanabhakdi is set to take control of F&N after a consortium led by Indonesian tycoon Stephen Riady bowed out of a two-month bidding war for the Singapore drinks and property company on Monday.

Charoen is offering S$9.55 per share for F&N, which values the company at S$13.75 billion. Charoen currently controls 42.5% of F&N.

Ng estimates that the transaction is expected to take until end-February or mid-March to complete.

"If there is a change in shareholder in Singapore, we will know the impact later. We will work with the new shareholder," he said.

Ng added that F&N is currently represented by three directors on the board of FNH. They are Anthony Cheong Fook Seng, Pascal De Petrini and Tong Sing Eng.

Analysts reportedly said Charoen is likely to tap F&N's network in Singapore and Malaysia to distribute Chang Beer, brewed by Thai Beverage, as well as spirits, energy drinks and instant coffee.

Being the major player in soft drink manufacturing in Malaysia, Ng said FNH will have to be operationally efficient and produce at low cost, maintain leadership and always look for investment opportunity to achieve sustainable earnings.

For the financial year ended Sept 30 2012 (FY12), the group's net profit dropped 28% to RM274 million from RM383.1 million on lower revenue.

On its property investment business, Ng said FNH will launch Phase 1 of its Petaling Jaya's Section 13 residential project, which has a gross development value of RM1.6 billion, in mid-2013.

Earlier at the AGM, FNH shareholders approved a final dividend of 23 sen per share for FY12, together with a special dividend of 15 sen per share.

Total dividends paid for the year is 58 sen a share, including a 20 sen interim dividend. -- The Sun Daily / Premalatha Jayaraman

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