OUE confirms grab for Fraser and Neave's property portfolio

A CONSORTIUM led by Overseas Union Enterprise (OUE), whose assets include Crowne Plaza Changi Airport, Mandarin Orchard Singapore and Marina Mandarin Singapore, put down a S$13.1 billion (US$10.7 billion) bid for Fraser and Neave (F&N) on Thursday night, eyeing the company's property portfolio.

OUE Baytown is offering S$9.08 per share, topping Thai tycoon Charoen Sirivadhanabhakdi’s S$8.88.

F&N’s second-largest stakeholder Kirin Holdings has agreed to accept the offer subject to certain conditions. Should OUE’s bid be successful, Kirin will also make an offer to purchase F&N’s food and beverage business.

The move could split up the 129-year-old F&N, leaving OUE to take over its property business, which includes hospitality and serviced residence arm Frasers Hospitality.

F&N had earlier received an offer for Frasers Hospitality at S$1.4 billion, which it did not respond to (TTG Asia e-Daily, October 10, 2012), saying that the latter formed an integral part of its property business and that it was constrained from selling while it remained the subject of a takeover bid.

OUE executive chairman, Stephen Riady, said: “(F&N’s) property portfolio would be highly complementary to OUE’s existing property portfolio. Combining both will further strengthen OUE as a leading property player in Singapore and expand our footprint in Singapore and regionally.”

Local broadsheet The Straits Times also reported that OUE may sell off Mandarin Orchard Singapore and Mandarin Gallery to finance the bid. In September, OUE revealed that a buyer had expressed interest in the two properties, collectively valued at S$1.7 billion in the company’s annual report last year (TTG Asia e-Daily, September 20, 2012).

Sourced: TTG Asia