TODAY'S HEADLINE


HEINEKEN BIDS $7.5B TO GULP DOWN APB  
O'er for Tiger'maker could spark counter'bids as Asian beer battle heats up  HEINEKEN NV has launched a swift  defence of its interests in Asia Paci'c Breweries (APB) with a takeover o'er worth $7.5 billion  '  a move that could trigger more counterbids for the prized Tiger Beer brewer.

This comes just two days after companies linked to Thai tycoon Charoen Sirivadhanabhakdi inked deals to buy into APB and its second largest shareholder Fraser and Neave (F&N). Heineken is APB's largest shareholder with a deemed interest of around 42 per cent, held directly and through a joint venture with F&N, which, in turn, has a deemed interest of some 40 per cent. Heineken is o'ering to buy F&N's direct and indirect stakes in APB for $5.1 billion, or $50 per share. That o'er price is 19 per cent above APB's last closing share price of $42 on Thursday, and is also 45 per cent above APB's one'month volume weighted average share price.

When the conditions of the o'er are satis'ed, Heineken will make a mandatory general o'er for all the APB shares it does not already own at $50 per share. That will cost it $2.4 billion. Heineken is also o'ering $163 million for F&N's stake in non'APB assets held by the joint venture. These include interests in the China beer business.

Its bid for APB is pricey. Bloomberg noted that the deal values APB at about 17  times of earnings before interest, tax, depreciation and amortisation, whereas the median multiple for major brewery takeovers in the past 've years was 13. It also said that Heineken plans to take up new debt to help fund the takeover. Heineken is looking to end  ties with long'time partner F&N as shareholder changes brew at F&N and APB.

NEWS BUZZ
Far East Reit 
To launch a hospitality Reit soon
Far East Reit, which owns hotels and serviced residences in Singapore, has started pre'marketing of an IPO o'ering of up to $700mil, potentially making it one of the largest deals in the region this year. The Reit is being marketed at a yield of around 6 to 6.5%.
Far East Reit and its bankers will start taking orders for the IPO on Aug 6, with pricing slated for Aug 15. The Reit is set to debut on the Singapore stock exchange on Aug 27.

CapitaCommercial Trust (S$1.33) 
CCT open to going into decentralised areas  
CapitaCommercial Trust (CCT), which owns several CBD o'ce properties, is open to venturing into Singapore's decentralised areas if it makes economic sense. CCT posted DPU of 2.06 cents for the three months ended June 30, 2012, up 7.3% a year earlier. The trust, which makes semi'annual payouts, will give unitholders DPU of 3.96 cents for the 'rst half.   Books closure date is July 31 and payment is on Aug 29. CCT's gross revenue rose 5.2% year on year to $95.8mil 2Q12 on the back of a full quarter's contribution from Twenty Anson, upward revision of HSBC's rent at its namesake Collyer Quay building, bigger contribution from Ra'es City, and higher yield protection income from One George Street. Net property income rose 7.8% to $75.2mil in Q2, helped by the revenue improvement along with lower property tax, on the back of a successful appeal on Six Battery Road, and this will continue to 'ow through for the rest of the year.

In the June 2012 valuation exercise, CCT's property por''olio was valued at $6.2bil, up 1.1% from six months ago. CCT's adjusted NAV per unit excluding the distributable income to unitholders was $1.58 at June 30, 2012. CCT has no outstanding debt maturing this year and its low 30.1% gearing puts it in a strong position, with ample debt capacity and 'nancial 'exibility, for future acquisitions and funding of ongoing asset'enhancement works and the CapitaGreen development, said Ms Leong.

Fortune Real Estate Investment Trust (HK$4.98)  
Q2 DPU rises 32.5%
Fortune Real Estate Investment Trust (Fortune Reit) saw its DPU for the 2Q rise  2.5% year on year to 8.04 HK cents. This was achieved on the back of a 33.8% increase in distributable income at HK$136.54mil (S$22.12mil). Quarterly net property income was up 24.2% at HK$196.80mil, while total revenue rose 22% to HK$278.16mil. Fortune Reit said the stronger numbers were boosted by positive rental reversions across its enlarged por''olio and completed acquisitions. Fortune Reit's por''olio of 16 private housing estates retail properties will continue to bene't from the strong retail environment. The leases that will expire in the second half of 2012 account for 18.2% and 16.7% of the gross rentable area and gross rental income of Fortune Reit's por''olio respectively.

Source: The Business Times

Source: AmFraser