Beer pong

19 July 2012 By Wayne Arnold

Thai Beverage has spooked Heineken by paying $3 bln for a piece of the Dutch brewer’s Singaporean partner. It is paying a hefty premium and racking up big debts for less than a fifth of the target. It needs more to make the finances stack up. That will be a tall order.

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Thai Beverage said on July 18 that it has agreed to pay $2.2 billion to buy a 22 percent stake in conglomerate Fraser and Neave (F&N) from Oversea-Chinese Banking Corp. (OCBC), its insurance unit Great Eastern Holdings, and Lee Rubber Co.
Thai Beverage is controlled by Thai billionaire Charoen Sirivadhanabhakdi.
Moody’s has placed Thai Beverage under review for a downgrade, according to a statement released by the ratings agency on July 19. The review was prompted by the announcement that Thai Beverage had submitted a binding offer for a 22 percent stake in F&N, said Moody’s vice president and senior analyst Annalisa Di Chiara in the statement. Thai Beverage’s current rating is Baa2.

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