SINGAPORE - Shares in Fraser and Neave Ltd opened almost five per cent higher on Wednesday, after the real eastate and soft drinks company unveiled plans to separately list its property arm.
Fraser and Neave (F&N) said on Tuesday it will list shares in its property arm, Frasers Centrepoint Ltd, on the Singapore Exchange this year.
Thai tycoon Charoen Sirivadhanabhakdi owns F&N through his family vehicle TCC and Thai Beverage PCL. Shares in Thai Beverage fell 1.1 per cent at the market open.
Goh Han Peng, analyst at DMG & Partners Securities, said the property and food and beverage businesses of F&N were disparate.
The first step for Charoen was to spin off property to derive value.
"There is quite a fair bit of synergy between F&B (food and beverage) and ThaiBev, they can cross-sell each other's products across different markets".
At 0114 GMT F&N shares were trading at S$5.700, up 4.74 per cent.
