HONG KONGâ€"Fraser & Neave, the Singapore conglomerate being targeted for a takeover by a Thai billionaire, said Wednesday it received an unsolicited cash offer of 1.4 billion Singapore dollars, or $1.1 billion, for its hospitality and serviced residence business.
The company, which has businesses ranging from soft drinks to shopping malls, said it had rejected the bid for its hospitality unit, which operates serviced apartments in more than 20 Asian and European cities under the names Fraser Suites, Fraser Place and Fraser Residence.
‘‘The board views the hospitality and serviced residence business to be an integral part of the property arm of the company,'' Fraser & Neave said in an announcement to the Singapore stock exchange. The company did not identify the rebuffed bidder, but several media reports said it was Overseas Union Enterprise, a unit of Indonesia's Lippo Group.
Spokespeople for Overseas Union Enterprise and Fraser & Neave did not immed iately return phone calls and e-mails seeking comment.
Fraser & Neave also said Wednesday that, under Singapore securities law, it is blocked from selling substantial assets due to the takeover offer currently on the table. The Thai billionaire Charoen Sirivadhanabhakdi last month bid 8.8 billion Singapore dollars, or $7.2 billion, for the 70 percent of Fraser & Neave that he does not already own.
Shareholders of the Singaporean company face an Oct 29 deadline to vote on that offer. Fraser & Neave's independent directors, who are being advised by JPMorgan, are due to issue their opinion on Mr. Charoen's bid by Thursday.
Fraser & Neave shareholders last month voted to approve the 5.6 billion Singapore dollar, or $4.6 billion, sale of the conglomerate's brewing unit to Heineken. The Dutch company's purchase of Asia Pacific Breweries, maker of Tiger beer, came after a two month battle with Mr. Charoen but won it a larger footprint in lucrative and growing Asi an beer markets across Southeast Asia.
