Fraser and Neave invests S$115 million into JVs for Starbucks Thailand deal

Thai baht notesThai baht notes

Fraser and Neave has injected around S$114.84 million into two joint ventures to facilitate the acquisition of Starbucks Thailand, the beverage maker said in a filing to SGX Friday.

F&N invested S$76 million into wholly-owned subsidiary InterF&B and about S$38.84 million into its associated company F&N International Holding (FNIH) to facilitate the Starbucks Thailand acquisition by Coffee Concepts (Thailand).

For the acquisition, F&N will provide a guarantee of up to US$180 million, or around S$246.06 million, in favor of the sellers of Starbucks Thailand as security for CCT meeting its obligations, the filing said.

In addition, the company will provide a guarantee and indemnity of up to US$92.44 million in favor of HSBC’s Singapore and Bangkok branches as security for CCT, it said.

F&N and InterF&B together own 49 percent of FNIH, while the remainder is held by Green Bean Co. CCT is a partnership between F&N Retail Connection (FNRC) and Maxim’s. FNRC is 49 percent owned by F&N and InterF&B, while the remainder is held by FNIH.

In a separate filing to SGX Friday, Thai Beverage said its associate, FNIH, completed a 1.83 billion baht increase in its registered and paid-up capital.

Thai Beverage said it financed Green Bean’s capital increase via internal funds.

Green Bean is an indirect wholly owned subsidiary of Thai Beverage.

While you’re here, we’re hoping you can help us out.

Shenton Wire has been providing you with quick news and market analysis. But we need your support to continue to bring you the news you’ve come to expect and to expand our reach beyond Singapore.

Your monthly contribution will directly fund our journalism.

S$2     S$4       S$8

S$18       S$28       S$88

You can check your existing account here. You can also contact us about other contribution levels or for corporate subscriptions and syndication queries.