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JAPANESE drink and food manufacturer Kirin has acquired a 14.7% stake in Fraser and Neave, Singapore and Malaysia’s largest beverage manufacturer and brewer of Tiger beer, for ¥84.6b ($968m).

Kirin brews Ichiban Shibori beer, and holds licences for Johnny Walker whisky and San Miguel beer. It also produces tea and coffee, Yoplait dairy products and Tropicana juice drinks for the Asian and Australasian markets and through subsidiary Kyowa Hakko Kirin, manufactures pharmaceuticals. The company agreed the price with Selatar Investments, a subsidiary of the Singaporean government’s investment firm Temasek Holdings.  Kirin will pay ¥411 for each of the 205.5m shares, funded through existing cash and borrowings. The acquisition is part of Kirin’s long-term strategy to become a leading food and health business in Asia and Oceania, and will help Kirin to expand its business base in South-East Asia.

Temasek’s managing director, investments, David Heng, says: “We had invested in F&N in 2006 to support its ambitions in realising its F&B strengths and potential. When Kirin approached us with an acceptable offer over a week ago, we decided, on balance, that it was a good opportunity for F&N to work with an established F&B company with complementary strengths."

The transaction is expected to be complete by 29 July 2010.