F&N Takeover update

So an OEU (Overseas Union Enterprise) led consortium ( OEU and Farallon Funds), coupled with a collaboration with Kirin, is making a bid for F&N.

Quick notes,

14.7% F&N shares held by Kirin will be tendered into acceptance. (irrevocable undertaking)

Thresehold : 50% + 1 share acceptance by shareholders.

36.41% owned by TCC (Mr Charoen) already.

Price $9.08

Kirin will takeover the food and beverage units whilst OEU will takeover the property portfolio after the offer period.

I believe in either case, this will take a long time to solve as 36.41% is already held by Mr Charoen. He needs another 14.6%.

OEU will need another 35.4%. Time for the minorities to be the decider. So just hold on to your shares and sit tight.

My personal ramblings :

I am trying to think from Mr Charoen's shoes. Will he try to squeeze out more, ie make a counter bid and wait for the newly established partnership to outbid him 1 more?

I believe Mr Charoen should be very happy with his returns thus far. He would have made a handsome profit of roughly $170 million from accepting the Heneiken offer for APB.

If he accepts this bid for F&N , He will roughly make another $65-80 million.

I do wonder if there are any penalty on him repaying back his huge loan facility taken to buy the shares initially ( $2.8 billion )

In going through all the trouble, I tend to think Mr Chareon would not want this prized asset to slip quite so easily. He will most probably put in another counter bid.

Kirin has showed their resolved that they will only sell their stake to OEU, and buying back the F&B divisions from OEU.

I wonder if all this fails, will they build up a 20% stake to be a nuisance and demand to be paid at a higher multiple if Mr Chareon wants to get rid of them.

The OEU bid is funded with debt from Credit Suisse and Farallon Funds. Wonder how much more they are willing to pay up for this asset.

These 2 parties must have put in alot of work already for them to just walk away. I think even if Mr Charoen bids 1 up, they will still go in and fight for it.

I think there are more to come from both parties. Time to get my hands dirty, Entering trade.