(Bloomberg) -- Thailand’s richest person Charoen Sirivadhanabhakdi is seeking to realign his sprawling business empire along clearer lines, as the beverage giant he founded exits a property firm he also controls.
Thai Beverage Pcl will offload its entire stake in Singapore-based Frasers Property Ltd. to an asset holding company also owned by the billionaire, a Singapore stock exchange filing showed Thursday. As part of a proposed share swap with TCC Assets, ThaiBev will increase its stake in Singapore-based food and beverage company Fraser & Neave Ltd.
The proposed transaction will “cement our pure-play status by exiting the property business,” ThaiBev’s Chief Financial Officer Prapakon Thongtheppairot said in the statement.
ThaiBev’s 28.78% stake in Frasers Property will be reduced to zero after the transaction, which is subject to approval from shareholders at an extraordinary general meeting in Thailand. Conversely, TCC’s stake in Frasers will grow to 86.89% from the current 58.1%. ThaiBev’s stake in F&N will increase to 69.61% from 28.31%.
Shares of F&N in Singapore jumped 22% on Thursday, the biggest intraday gain since 2013, to S$1.30. Frasers climbed as much as 8.8% before paring the gains to less than 2%. ThaiBev rose as much as 3% to the highest since June 11 after a trading halt was lifted in Singapore.
The proposed swap will be executed at a ratio of approximately 1.88 Frasers shares for each F&N share. That was based off a negotiated price of S$1.89 per Frasers share, and S$3.55 per F&N share.
There had been speculation about the fate of Frasers after Dow Jones reported earlier this year that divestment was being considered as part of a strategic review. Charoen denied in January that the owners will sell their stake.
ThaiBev’s brands include SangSom rum, Grand Royal whisky and Chang beer. It backs F&N for its business lines in 100Plus soft drinks and Magnolia dairy products.
F&N said last July that it will buy alcohol licenses and land use rights to operate a brewery in Myanmar.
--With assistance from Eduard Gismatullin.
(Updates with ThaiBev shares in the fifth paragraph)
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