(Reuters) -Thai Beverage (ThaiBev) will exit the real estate business by transferring its entire stake in Singapore-based Frasers Property to TCC Assets under a share swap agreement, an exchange filing showed on Thursday.
"Streamlining the company's focus towards a pure-play beverage and food business by exiting the property business and increasing its exposure to non-alcoholic beverages and dairy could result in a potential re-rating in line with pure-play beverage and food peers," ThaiBev said in a statement.
The drink maker, controlled by Thai billionaire Charoen Sirivadhanabhakdi, said its unit InterBev Investment would transfer its 28.78% stake in Frasers Property to Thailand-based TCC Assets, which in return would transfer a 41.30% shareholding in conglomerate Fraser and Neave to InterBev.
The share swap involves shares worth S$2.14 billion ($1.60 billion) based on Reuters calculations. It will value Frasers Property shares at S$1.89 apiece and Fraser and Neave shares at S$3.55 apiece.
ThaiBev aims to strengthen its non-alcoholic beverage segment and Fraser and Neave targets to bolster its beverage and food brands in Southeast Asia with the share swap.
Shares of Fraser and Neave gained 16.8% to S$1.25, while those of Frasers Property climbed 3.8% to S$0.83. Shares of ThaiBev were on a trading halt.
($1 = 1.3390 Singapore dollars)
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Alan Barona and Subhranshu Sahu)
