Deal to cement ThaiBev39;s pureplay status
ThaiBev to seek shareholder approval at EGM

July 18 Reuters Thai Beverage, Southeast Asia39;s biggest brewer, plans to divest its real estate assets and become a pureplay drinks and food firm in a share swap with other companies held by its owner, tycoon Charoen Sirivadhanabhakdi.

Under the deal, ThaiBev, the owner of brands such as Chang beer and Grand Royal whisky, will transfer its 28.8 stake in Singaporebased Frasers Property, worth roughly 1.6 billion based on the negotiated price, to property firm TCC Assets.

In return, TCC Assets will transfer over shares worth roughly the amount in Singapore drinks and food firm Fraser and Neave FN. ThaiBev39;s ownership of FN will jump to just under 70 from around 28 upon completion of the deal.

Streamlining the company39;s focus towards a pureplay beverage and food business by exiting the property business and increasing its exposure to nonalcoholic beverages and dairy could result in a potential rerating in line with pureplay beverage and food peers, ThaiBev said in a statement.

The deal values FN at around S5.2 billion 3.9 billionand Frasers Property at about S7.4 billion.

Shares in FN surged 26 to S1.35, while those in Frasers Property climbed 5.6 to S0.85. ThaiBev39;s stock was on a trading halt.

ThaiBev said it will be seeking approval from its shareholders for the proposed share swap at an extraordinary general meeting in due course.

DBS is acting as ThaiBev39;s…