Thai tycoon to oppose F&N capital reduction
Charoen holds enough shares to ensure that scheme will surely fail
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Parties linked to Thai billionaire Charoen Sirivadhanabhakdi will vote against Fraser and Neave's (F&N) $4 billion capital reduction scheme on Friday, effectively killing the proposal. -- PHOTOS: REUTERS
- PHOTOS: REUTERS
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The sale of Asia Pacific Breweries, maker of Tiger Beer, will also be up for shareholder approval tomorrow, but no obstacles are expected. -- PHOTOS: REUTERS
- PHOTOS: REUTERS
Parties linked to Thai billionaire Charoen Sirivadhanabhakdi will vote against Fraser and Neave's (F&N) $4 billion capital reduction scheme on Friday, effectively killing the proposal. -- PHOTOS: REUTERS
The sale of Asia Pacific Breweries, maker of Tiger Beer, will also be up for shareholder approval tomorrow, but no obstacles are expected. -- PHOTOS: REUTERS
Parties linked to Thai billionaire Charoen Sirivadhanabhakdi will vote against Fraser and Neave's (F&N) $4 billion capital reduction scheme on Friday, effectively killing the proposal.
The resolution needs backing from 75 per cent of shareholdings at the extraordinary general meeting. But Mr Charoen's investment vehicles Thai Beverage and TCC Assets hold about 30.7 per cent of F&N in total.
The declaration on Wednesday that they will vote against the capital reduction scheme means it cannot get to that benchmark.
F&N had planned to cancel one third of all the stock and pay investors $8.50 for each share cancelled - a potential payout of $4billion.
Background story
If the APB stake sale goes through as expected, and the general offer by Mr Charoen lifts his stake to at least 50 per cent, the Thai tycoon will have a big say in the use of the cash, including possibly employing it to expand F&N's businesses.
F&N RESOLUTION
- F&N planned to cancel one third of all the stock and pay investors $8.50 for each share cancelled - a potential payout of $4 billion.
- The resolution needs backing from 75 per cent of shareholdings.
- Mr Charoen's investment vehicles Thai Beverage and TCC Assets hold about 30.7 per cent of F&N in total. The declaration yesterday that they will vote against the capital reduction scheme means it cannot get to that benchmark.
