Fraser & Neave (F & N)

[specuvestor]

Not necessary. What TCC needs is merely the interest payment only. F&N + FCL's dividend can cover that part well enough.

Further how TCC restructures FCL is anyone's guess. but one thing is that TCC can't reduce its stake in FCL in two years(? can't remember exactly in the circular)

FCL still has good asset to monetize.

Depends on level of TCC debt used to take over FNN. It is a LBO. At 30% LTV, service interest payments can liao. At 60-70%, better pay it down or lose it at the next downturn.

Towkay will want to get hands on 100% of FNN cashflow. cannot do it if owned less than 100%.

As mentioned by others here, best way to rip cash out is sell assets to FCL. FCL debt level will likely to go up...

TCC can consolidate FCL & F&N's financial result into its own. The banks will look at the whole group, rather than individual companies within the group.

I doubt TCC will simly take advantage of FCL's minority shareholders by injecting assets. It does not reflect well. A honorable man will do it honorably and fairly. TCC can team up with FCL to monetize the assets instead of injecting assets directly.

You are belittling the man.

No. I am referring to the tried and tested option of getting cash fast out of a company. That life in the real world where everyone is looking out for no. 1. Alignment of interests is better than fair and honor, in area of investment.

I also hope for a day when fairness and honor prevails. Then no need code of corp gov and independent directors and IFAs liao.

Accounting profits cannot pay debts one. To get hard cash to repay debt, company better to have 100% ownership. If not, troublesome and leaky. Cashflow leaked to minority investors. So if want to see more dividends from FNN, better reject any share swap. U want to be the toll booth between TCC and FNN. But don't know who are the minority shareholders now after compliance placement.

I do recall Freedom believes that majority shareholder is not obligated to take care of minorities. It is capitalistic, nothing to do with honor or fairness. (paraphrased cause too lazy over the holiday season to dig up posts). Not trying to be nitpicking but trying to be consistent.

And my view remains that I doubt ThaiBev is getting a good deal out of the whole saga. TCC will take care of their own interest.