Singapore law firms
Rajah & Tann
are advising on a Thai mogul’s $3 billion acquisition of a piece of Singapore’s beverage business.
The Thai company, which produces Thailand’s Chang beer and is controlled by billionaire Charoen Sirivadhanabhakdi, is purchasing its stakes from the
Oversea-Chinese Banking Corp.
(OCBC), Singapore’s second-largest bank, and
Great Eastern Holdings Ltd.
, OCBC’s insurance subsidiary.
OCBC’s choice to sell its stake in Fraser & Neave is in line with its strategy to divest in non-core assets to refocus on its core financial business, the bank said in a statement to the Singapore Exchange. It is also planning to sell another of 8.6-percent stake in Asia Pacific Breweries to Kindest Place Groups Ltd., which belongs to Sirivadhanabhakdi’s son-in-law, Chotiphat Bijananda.
According to the Wall Street Journal
, the deal sets up a potential struggle for control among Thai Beverage, Heineken, which owns 42 percent of Asia Pacific Breweries, and Japan’s
Kirin Holdings Co.
, which acquired a 14.7 percent stake in Fraser & Neave two years ago.
WongPartnership is acting for Thai Beverage with a team led by partners Ng Wai King, Annabelle Yip, and Teo Hsiao-Huey.
Rajah & Tann partners Goh Kian Hwee, Serene Yeo and Cynthia Goh are advising OCBC and Great Eastern.