F&N bid helps ThaiBev's deal "pipeline" Thai Beverage, Thailand's biggest drinks and property conglomerate, has shed rare light on its regional ambitions, saying its audacious S$8.88bn bid for Singapore's Fraser and Neave is a "natural investment" as part of a "pipeline" of deals in the drinks business. The comments, made to local media by Thapana Sirivadhanabhakdi, chief executive of ThaiBev, offer a rare insight into the mindset of a business that has until this week been locked in a complex battle with Dutch brewer Heineken over the fate of Asia Pacific Breweries, maker of Tiger beer. Heineken had been forced to raise an initial offer for F&N's stake in APB by a series of moves from ThaiBev which have netted the Thais significant gains as holders of APB shares. Heineken and ThaiBev this week reached a pact clearing the way for the Dutch brewer to take control of APB, which it wants to give it greater exposure to Asia's rapidly growing beer markets. That has left F&N the target of the S$8.88bn offer from TCC Assets, a unit of a business empire owned by Charoen Sirivadhanabhakdi, father of the ThaiBev chief executive. Mr Charoen, through ThaiBev, has already amassed a 30.36 per cent stake in F&N. Mr Charoen's son told Thai media that the group's bid for F&N was a key "piece of the jigsaw" in his father's international expansion strategy. TCC Group had been "studying F&N for a long time," Mr Thapana said, adding that F&N's strong cash flow, management know-how and regional distribution network would help drive the Thai group's expansion. F&N derives over half of its revenues from property holdings, and has a profitable soft drinks business selling F&N-branded drinks, mostly in Malaysia and Singapore. Analysts say Kirin of Japan, the second-biggest F&N shareholder with 15 per cent, may be interested in that business. ThaiBev and TCC were eyeing opportunities "not only in Asia but throughout the world," Mr Thapana said, suggesting that the initial focus would be on the beverage business and F&N's distribution network. What the company [ThaiBev] has been doing with F&N was quite clear in the eyes of investors and the general public. The company has never played games, but is looking for long-term value creation with F&N," said Mr Thapana. With F&N we are looking to explore opportunities for our beverage business as the main objective. It is a quite natural investment, as we will have a pipeline of sequential business deals," he said. Pavida Pananond, associate professor of international business at Thammasat University in Bangkok, said F&N's soft drinks distribution networks appeared to be "at the heart of the deal." The non-alcoholic beverage is a huge and growing market. Real estate is of course a nice addition, but not what ThaiBev really wants from F&N," she said.