Singapore-based Fraser and Neave (F&N) has scheduled an extraordinary general meeting (EGM) on 28 September 2012 for its shareholders to vote on the proposed sale of stake in Asia Pacific Breweries (APB) and Asia Pacific Investment (APIPL), a 50-50 joint venture company through which F&N and Heineken hold their interests in APB.

On 18 August 2012, the company signed an agreement to sell its entire 39.7% stake in APB and other assets in APIPL to Heineken International for a sum of $5.6bn.

Under the agreement, shareholders will be distributed with nearly $4bn through the capital reduction mode of one for every three F&N shares, at $8.50 per cancelled share.

The proposed disposal of F&N’s stakes in APB and APIPL to Heineken will require approval by a simple majority of shares present and voting at the EGM while the proposed capital reduction requires the votes of 75% of shares present and voting at the EGM.

F&N chairman Lee Hsien Yang said Heineken’s improved offer represents the best opportunity for the group to immediately realise the value of its interests in APB and APIPL and maximises overall returns for F&N shareholders.

"The proposed distribution of the proceeds by way of capital reduction is a win-win as it achieves a more efficient capital structure post disposal while allowing us to distribute substantially the gain on disposal to F&N shareholders," Yand added.

"The remainder of the proceeds will be used to repay part of the existing debt, giving us flexibility to take advantage of business opportunities in the Food & Beverage and Properties businesses, in the region.

"We will continue to leverage our infrastructure, network and core competencies to achieve our vision to be an Asian-based world-class MNC, to deliver superior return to our shareholders."