Shares of Fraser and Neave Ltd (F&N) extended
their decline, falling to the lowest in around nine months,
after the company's biggest shareholders said they intend to
maintain the listing of the Singapore property and drinks group.
F&N shares lost as much as 10.9 percent to S$8.02 on
Tuesday, the weakest level since July 25 last year. The stock
had plunged around 15 percent since trading of the shares
resumed on Monday.
In January, Thai billionaire Charoen Sirivadhanabhakdi won a
two-month battle against a group led by Overseas Union
Enterprise Ltd after raising his bid for the remaining
F&N shares he did not own to S$9.55 a piece.
Market players had expected Charoen to delist F&N as he has
since gained control of more than 90 percent of the firm through
TCC Assets Ltd and Thai Beverage PCL. But last week
the Thai companies said that they intend to maintain F&N's
listing and they are working to restore its free float.
Under Singapore Exchange listing rules, the free float of a
company must be at least 10 percent for it to remain listed.
This means that the Thai firms may look at means such as a share
placement or a sale of part of their stake to meet this
"Previously F&N had traded up on a takeover premium. I think
what is happening now is that given it is not going to be fully
delisted, it could be losing some of that premium," said Vincent
Fernando, an analyst at Religare.
"One would expect some sort of a break-up -- the property
business separate from the consumer businesses. But it really
depends on the plans that ThaiBev and TCC have."
1228 (0428 GMT)
10:39 STOCKS NEWS SINGAPORE-Tiger Airways rises on regulator
Shares of Singapore's Tiger Airways Holdings Ltd
rose to their highest in more than three months after
Australia's competition regulator approved a deal between the
budget carrier's Australian unit and Virgin Australia Holdings
Tiger Airways shares jumped as much as 12 percent to S$0.735
on Tuesday, their highest since Jan. 18. Some 10.7 million
shares were traded, 7.4 times the average full-day volume over
the past 30 days.
Virgin, Australia's No.2 carrier, had in October announced
plans to buy 60 percent of Tiger Australia for A$35 million
($35.9 million) and invest a further A$62.5 million to increase
the fleet size to 35 aircraft from 11 by 2018.
The Australian Competition and Consumer Commission said it
had decided not to oppose the deal on the basis that Tiger
Australia was unlikely to remain in the local market without the
"With this approval in place, Tiger Airways can now look
forward to commencing discussions with Virgin on its plans to
grow Tiger Australia, and enable it to compete more effectively
in the Australia's budget carrier space," DBS Vickers said.
UOB Kay Hian said Tiger Australia will take over some of
Tiger Airways' fleet delivery and thus free it from capital
Tiger Airways is now free to focus on growing its business
out of Singapore and its associates in Indonesia and the
Philippines, the broker added.
1026 (0226 GMT)