Wednesday, January 2, 2013

FNN

FNN: Independent financial adviser JPM finds Kirin's $2.7b offer for FNN's F&B business to be "fair but not reasonable”, from a financial point of view. The unit's est sum-of-parts valuation is btwn $1.877-3.82b. “Fair” refers to the bid meeting at least the lower bound of an independent valuation. “Reasonable” is assessed by the expert to believe whether there are sufficient reasons for the shareholders to accept the offer. Recall Kirin has agreed to accept OUE's $9.08/sh offer for its 14.8% stake in FNN, and in return, if OUE's bid was successful, OUE will vote in favour of Kirin's bid to buy FNN's F&B business for $2.7b. However, the undertaking between OUE and Kirin depended on JPM signing off on the F&B offer as "fair and reasonable"; if not, Kirin would be entitled (but not obliged) to revise offer to make it a fair and reasonable one. FNN's F&B business includes non-beer and beer operations and activities of F&N Hldgs Bhd, F&N Spore, Myanmar Brewery, Vinamilk.

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