Heineken's S$7.7-billion bid to take full control of Asia Pacific Breweries (APB) is in jeopardy after a group led by Thai billionaire Charoen Sirivadhanabhakdi put in a higher offer to increase its stake in the maker of Tiger Beer.

Kindest Place Groups, an investment vehicle owned by Mr Sirivadhanabhakdi's son-in-law, Mr Chotiphat Bijananda, yesterday made an unsolicited offer of S$55 a share to buy conglomerate Fraser and Neave's (F&N) direct 7.3-per-cent stake in APB.

Kindest's S$1.03-billion offer for the 18.75 million shares will lapse at 5pm (Singapore time) on Aug 16.

The offer is 10 per cent better than the S$50 a share that the F&N board had agreed on last Friday to sell its stakes in APB to Heineken in an overall deal worth S$5.3 billion.

But Heineken is standing firm, stressing that its offer is totally different from Kindest's as it is for F&N's total 39.7-per-cent stake - direct and indirect - in APB as well as non-APB assets in its joint venture with F&N.

Heineken spokesman John-Paul Schuirink said: "We still back our offer of S$50 per share. The offer of Kindest Place is not at all comparable to ours as we provide excellent value to all shareholders in APB and not just a part of them."

At stake is a prized platform for expansion into the region, with APB one of the fastest-growing and most profitable beer companies in Asia.

Should Kindest succeed, it will control 15.9 per cent of APB, having acquired a 8.6-per-cent stake in the brewer for S$990 million last month.

Mr Sirivadhanabhakdi can also try and block the sale of APB to Heineken by voting against the deal through Thai Beverage, which he controls. ThaiBev, the maker of Chang Beer, is F&N's biggest shareholder with about 24 per cent.

Heineken, which already holds 42 per cent of APB, will make a general offer worth S$2.4 billion for the remaining shares after the sale by F&N is put to a shareholders' vote. F&N directors have recommended its shareholders to accept the offer.

TODAY