Thai Beverage, also known as ThaiBev, has announced its decision to divest from the real estate sector by transferring its complete stake in Singapore-based Frasers Property to TCC Assets in Thailand, as revealed in an exchange filing on Thursday.
The share swap agreement involves InterBev Investment, a subsidiary of ThaiBev, transferring its 28.78% ownership in Frasers Property to TCC Assets, while TCC Assets will transfer a 41.30% shareholding in conglomerate Fraser and Neave to InterBev.
ThaiBev highlighted its strategic shift towards focusing solely on the beverage and food industry, aiming to enhance its presence in non-alcoholic beverages and dairy products. The company expressed confidence that this move could potentially lead to a re-rating aligned with its peers in the beverage and food sector.
The share swap deal, estimated at S$2.14 billion ($1.60 billion) based on Reuters calculations, values Frasers Property shares at S$1.89 each and Fraser and Neave shares at S$3.55 each.
The transaction is intended to reinforce both ThaiBev’s non-alcoholic beverage segment and Fraser and Neave’s beverage and food brands in Southeast Asia.
Following the announcement, shares of Fraser and Neave surged by 16.8% to S$1.25, and Frasers Property saw a 3.8% increase to S$0.83. Meanwhile, trading of ThaiBev shares has been temporarily halted.
