F&N gets cash offer for serviced-residence & hospitality business

Singapore’s Fraser and Neave has received an unsolicited cash offer from an unidentified party for its serviced-residence and hospitality business.

The conglomerate said the S$1.4 billion (US$1.1 billion) offer is unrelated to any director or substantial shareholder of F&N.

Last month, TCC Assets, which is linked to Thai Beverage, offered S$8.88 a share for the entire F&N business, valuing the company at S$10.3 billion.

F&N said its serviced-residence and hospitality business, which covers some two dozen Fraser Suites and Residences across Asia, is an integral part of the company.

It added the company is constrained from undertaking the sale while TCC’s bid is active.

F&N also said in a stock filing that it it will not respond to third party offers, without identifying the bidder.

Sources close to the matter have however named Overseas Union Enterprise Ltd, in the hospitality bid.

OUE which is a Singapore hotel and property firm backed by Indonesia’s Lippo Group, has a portfolio that includes luxury residential development Twin Peaks, the Mandarin hotels in Orchard and Marina Bay as well as office blocks along Marina Bay and Raffles Place.

Source : Channel NewsAsia – 10 Oct 2012

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