Heineken eyes Asian brewer

HEINEKEN has offered to pay more than $US4 billion ($A3.85 billion) for a stake in Asia Pacific Breweries, one of the region's biggest brewers, trumping an offer made by a rival last week and highlighting the industry's intense appetite for assets in fast-growing emerging markets.

Heineken, the Dutch brewing giant, offered 50 Singapore dollars, or $US39.84 a share, for a 40 per cent stake held by Fraser and Neave, a Singapore-listed conglomerate and long-standing partner of Heineken's in the region.

If the offer of $S5.1 billion dollars, or $US4.1 billion, is accepted, it would considerably beef up Heineken's 42 per cent holding in Asia Pacific Breweries.

If successful, the bid would also trigger a requirement that Heineken makes a mandatory buyout offer to remaining shareholders of the Asian brewer.

That would add as much as 2.4 billion Singapore dollars to the overall price, and it underscores how eager the Amsterdam-based Heineken is to expand in emerging markets.

Listed in Singapore, Asia Pacific Breweries operates 30 breweries throughout Asia, including in Mongolia, Papua New Guinea and the Solomon Islands. Its brand portfolio includes Tiger Beer and Bintang lager, some of the best-known beers in the regional markets where they are sold.

''If agreed, the offer will strengthen Heineken's platform for growth in some of the world's most exciting and dynamic economies with fast-growing populations,'' Heineken said on Friday.

The Dutch company said a successful deal would give it ''direct access to a number of important markets, including Cambodia, China, Indonesia, Malaysia, New Zealand, Papua New Guinea, Singapore, Thailand and Vietnam.''

Heineken's move to buy out the breweries' remaining shareholders appears to have been triggered by an offer last week by Thai Beverage, which was seeking stakes in Asia Pacific Breweries and Fraser and Neave.

Thai Beverage, controlled by Thai billionaire Charoen Sirivadhanabhakdi, offered to buy 22 per cent in Fraser and Neave for $S2.78 billion.

At the same time, a company called Kindest Place, reportedly controlled by a relative of Sirivadhanabhakdi's, bid for a stake of about 8 per cent in Asia Pacific Breweries. The latter offer is only $S45 a share.