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Heineken wins control of Tiger for US$4.5bn

Heineken has won the controlling stake in Tiger beer, buying out Fraser and Neave’s shares for US$4.5 billion.

The Dutch beer company raised its offer price for the 40 per cent share in Asia Pacific Investment Pte Ltd (APIPL) from 50 Singaporean dollars per share up to 53.

The offer was dependant on a vote by shareholders of Singapore-based Fraser and Neave’s, and on Saturday it confirmed it had accepted the offer.

APIPL is a joint venture between Heineken and Fraser and Neave which operates Asia Pacific Breweries (APB).

In addition to the Tiger brand, APB range also includes popular Asian brands Anchor beer, Baron's Strong Brew, ABC Extra Stout, Archipelago beer and Bintang beer.

Heineken's chief executive, Jean-François van Boxmeer, said in a statement that the operations will stay largely the same.

"Our Asian headquarters will continue to be based in Singapore, and we remain 100% committed to the growth and success of APB and the Tiger brand,” he said in a statement.

If the offer is officially approved, Heineken will have a stake of more than 80 per cent in APB, leading to automatic takeover offer for the remaining shares, which would cost the company another 2.5 billion Singaporean dollars.

As part of the deal, Fraser and Neave has confirmed it will not "solicit, engage in discussions or accept any alternative offer or proposal" for its interests in APB, a clause which refers to a rival bid from the family of Thai billionaire Charoen Sirivadhanabhakdi.

Charoen, who controls Thai Beverage (ThaiBev), South East Asia's second biggest brewer, made a 55 Singapore dollar per share offer for a smaller stake in APB.

ThaiBev is Fraser and Neave's biggest shareholder with a 26.4 per cent stake, meaning it will play an important role in the upcoming shareholder vote.

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