UPDATE 2-Kirin to buy Fraser & Neave stake from Temasek

* Temasek sells 14.7 pct stake in F&N for S$1.3 bln

* Temasek gets a hefty gain of 49 pct on its stake value

* Kirin says deal aimed at soft drinks, dairy in SE Asia

* Per share price of S$6.5 a 15 pct premium to last close

(Adds details, byline)

By Taiga Uranaka and Saeed Azhar

TOKYO/SINGAPORE, July 26 (Reuters) - Japan's Kirin Holdings (2503.T) will buy a 14.7 percent stake in beer and property conglomerate Fraser & Neave (FRNM.SI) from Singapore state investor Temasek Holdings for $953 million to accelerate its expansion in Asia.

Kirin has spent nearly $5 billion on acquisitions in the past two years to diversify its operations and grow outside its saturated home market of Japan, where it vies for the top spot in beer sales with Asahi Breweries (2502.T).

The maker of Ichiban Shibori beer agreed to pay S$6.5 for each share of Fraser & Neave, a 15 percent premium to Monday's closing price. The S$1.3 billion ($953 million) investment will make Kirin the second-largest shareholder after Singapore lender OCBC (OCBC.SI).

The brewer said the transaction was primarily aimed at bolstering its soft drinks and dairy products businesses in Southeast Asia and it did not plan to raise its stake further. The company said, however it would look for other deals to drive growth.

"This (Fraser & Neave) deal is not the end. There are still areas we need to bolster, and we will continue to make investments where necessary," Kirin Managing Director Hirotake Kobayashi told a news conference in Tokyo.

Kirin President Senji Miyake has said he would actively seek acquisitions after ending talks earlier this year on a merger with rival Suntory [SUNTH.UL], which would have created a beverage and food giant with $40 billion in annual sales. [ID:nTOE6190AX]

Fraser & Neave booked S$5.6 billion in revenue in the year ended September 2009. Its food and beverage business, which includes Fruit Tree Fresh juices and isotonic drink 100Plus, accounts for about half its revenues, while real estate generates a third.

Kirin has made a number of acquisitions recently, including a $1.5 billion investment for 48 percent of San Miguel Brewery (SMB.PS), the beer arm of southeast Asia's biggest food and drinks group, San Miguel Corp (SMC) (SMC.PS) SMCB.PS.

"We have been making investments in beer businesses in Oceania and the Philippines but we have blank spots in the soft drinks business in Southeast Asia. We are acquiring the stake in F&N to strengthen that."

Temasek will earn a hefty profit of about 49 percent on the sale as it bought the stake in F&N for about S$900 million in December 2006.

"When Kirin approached us with an acceptable offer over a week ago, we decided, on balance, that it was a good opportunity for F&N to work with an established food and beverage company with complementary strengths," David Heng, Temasek managing director for investments, said in a statement.

Bank of America's Merrill Lynch advised Kirin on the deal. (Additional reporting by Kevin Lim in SINGAPORE and James Topham in TOKYO; editing by Karen Foster) ($1=1.370 Singapore Dollar) ($1=87.44 Yen)