Thai Beverage exits real estate sector, sells Frasers stake to TCC
Thai Beverage Pcl (ThaiBev) has notified the Singapore Exchange (SGX) that it will sell its entire stake in Frasers Property Limited (Frasers Property) to TCC Assets, a holding company affiliated with ThaiBev.
Under the share swap agreement with TCC Assets, ThaiBev will increase its holdings in Fraser & Neave (F&N), a food and beverage company in Singapore, instead.
Charoen Sirivadhanabhakdi, Thailand's richest man and founder of ThaiBev, is seeking to streamline his business empire. ThaiBev's decision to divest from real estate holdings aligns with this goal.
Prabhakorn Thongtheppairot, chief financial officer of ThaiBev, said that this transaction would clarify ThaiBev's business strategy by exiting the real estate sector.
The transaction will reduce ThaiBev's 28.78% stake in Frasers Property to zero, after approval from shareholders in Thailand.
Conversely, TCC Assets’ stake in Frasers Property will rise to 86.89% from 58.1%, and ThaiBev's stake in F&N will increase to 69.61% from 28.31%.
F&N's stock price surged 23% in Singapore, the strongest intraday gain since 2013, while Frasers Property shares rose 4.4%, the highest since January, offsetting a 6% decline earlier this year.
There had been speculation about Frasers Property's future, with Dow Jones previously reporting potential divestment as part of a corporate strategy overhaul. However, Charoen had denied the rumours of selling shares in January.
