SINGAPORE - Singapore-based food and beverage conglomerate Fraser & Neave (F&N) said Tuesday it was spinning off its property business months after the firm was bought over by Thai tycoon Charoen Sirivadhanabhakdi.
The move is aimed at paving the way for further growth for both the food and beverage business as well as the property segment, F&N said in a statement.
The company said it plans to list its property arm, Frasers Centrepoint Ltd, on the Singapore Exchange, where F&N is already listed.
F&N shareholders will receive, at no cost, two Fraser Centrepoint shares for every share owned through a "dividend in-specie" distribution, the statement said.
This means dividends that are not paid in cash.
The listing is "by way of introduction (so) there is no capital raised," Frasers Centrepoint chief financial officer Chia Khong Shoong told reporters.
F&N's move to spin off its property arm followed the S$13.8 billion ($10.7 billion) takeover of the company by Thai billionaire Charoen earlier this year.
Charoen's company, TCC Assets, which holds around 62 per cent of F&N, said it will vote for the proposal.
F&N became a takeover target after it sold off its most prized asset, Tiger Beer maker Asia Pacific Breweries, to Dutch giant Heineken in September last year.
Its other businesses include beverages, property and publishing operations.
The proposed transaction is subject to approval by F&N shareholders at an extraordinary general meeting in November, followed by the listing.