Fraser & Neave (F & N)

[rokcradle]

Yes IPT so TCC has to plan properly.

Most likely the listed entity will become property (including Thai) and REITS holding company while Thai Bev take the F&B. Question is how will thaibev structure look like? Will they continue to hold FNN shares to benefit TCC cash-flow?

My hypothesis is that F&N will be used as the Holdco for Charoen's property interests (F&N and TCC). The F&B portfolio will be separately listed. Consumer staples counters are commanding pretty rich valuations these days (PE upwards of 20 on average), hence this multiple expansion upon listing will be a good way to unlock value for existing shareholders.

As F&N gets broken up, Thaibev may concurrently "swap" its property interests in F&N for greater shareholdings of the F&B business. Proper valuation will have to be done for these arm's length transaction. This will address Thaibev's gearing concerns

"The business activities and operations of the Non-Beer division are mainly conducted through a listed entity in Malaysia, Fraser & Neave Holdings Bhd ("F&N HB" or "F&N Holdings Bhd")".

F&N Singapore controls 56.05% of F&N Malaysia.

In other word, F&N's f&b business is already listed. I don't know it can further unlock f&b value.

Looking at FNN group structure (http://www.fraserandneave.com/FN_aboutus...ucture.asp)

Food & Beverages
Soft Drinks and Dairies

1) Fraser & Neave Holdings Bhd:Malaysia, Thailand & Brunei

2) Other unlisted F&B operations: Singapore, Malaysia & Vietnam

Beer - Myanmar

So possible to have a F&B Holdco spin-off containing 56.05% FNN Berhad + other unlisted F&B + Beer in Myanmar (arguably a very attractive asset)?

Anyways, this is just a guess, just letting the creative juice go wild.