Frasers Property Owners Could Sell Company as Part of Strategic Review
The review is part of shareholders’ efforts to raise capital to pare debt accumulated in the last few years due to acquisitions
Frasers Property’s majority owners could sell the company or some of its assets as part of a strategic review, people familiar with the situation said.
One of the people said the review is in its initial stages and there is no assurance of any outcome.
The review is part of shareholders’ efforts to raise capital to pare debt accumulated in the last few years due to acquisitions.
Charoen Sirivadhanabhakdi, one of Thailand’s wealthiest people, owns an 87.0% stake in the Singapore-listed company through Thai Beverage Y92 -0.93%decrease; red down pointing triangle and unlisted TCC Assets and related entities.
Thai Beverage and Frasers Property declined to comment, while TCC Assets didn’t reply to email seeking comment.
Frasers Property’s total assets were approximately 39.8 billion Singapore dollars (US$29.91 billion) as of end-September.
The company is engaged in hospitality, operates industrial and logistical parks, and has real-estate investment trusts, besides residential, retail and commercial business. It has over 500 properties with operations in over 70 cities, including Australia, Vietnam, China and the U.K.
Charoen has spent billions of dollars to buy various assets through his entities, including Thai Beverage. In 2017, he paid nearly US$5 billion for a 53.6% stake in Vietnam government-owned Saigon Beer Alcohol Beverage or Sabeco. In 2016, he paid nearly US$3.5 billion to buy French retailer Groupe Casino’s nearly 59% stake in Big C Thailand.
Thai Beverage’s total liabilities at end-September stood at 253.03 billion baht (US$7.24 billion), according to the company’s latest annual report. It has THB61.92 billion of interest-bearing debt due within a year, and another THB119.63 billion due within five years.
Charoen has been looking to raise funds through stake disposals. In 2022, the company planned to list its brewery unit in Singapore, but the plan was deferred due to weak market conditions.
Shares of both Frasers Property and Thai Beverage were recently flat at S$0.92 and S$0.54 on the Singapore Exchange.