Heineken is facing stiff competition in its attempt to acquire a stake in Asia Pacific Breweries (APB) held by Fraser & Neave (F&N), following a challenge by Thai billionaire Chareon Sirivadhanabhakdi’s Kindest Place Groups to offer more than Heineken’s bid of $6bn.

With 42% of APB stake already in its hands, the brewer recently put a bid to buy APB stake at S$50 ($40.2) per share along with the buyout of minority shareholders, for $6bn, reported Reuters.

In contrast, Kindest Place Groups offered S$55 ($44.2) per share to buy F&N’s 7.3% direct stake in APB, the maker of Tiger Beer.

Heineken may be forced to raise its bid for 7.3% APB stake held by F&N, which also holds 40% of APB stake along with Heineken.

Singapore-based DMG & Partners Securities analyst Goh Han Peng told the news agency that the recent turn of events will fail Heineken’s offer.

"It will have to offer more than S$55 per share to outbid the Thai group, possibly S$60 per share," Peng added.

Having agreed to buy 7.9% stake of APB from Oversea-Chinese Banking Corp (OCBC) and Great Eastern Holdings for S$45 ($36.1) per share, the current bid if successful, will help Kindest Place Groups take control of over 15% APB stake.