Heineken has finalized a deal with Fraser & Neave over the entire stake in Asia Pacific Breweries (APB) at a rate of S$53 ($42.35) per share that accounts to S$5.4bn ($4.31bn).

The deal includes F&N’s entire direct and indirect share of 39.7% stake in APB and also F&N’s interest in the non-APB assets held by Asia Pacific Investment, a 50/50 venture between Heineken and F&N, for S$163 ($129.92m).

Heineken has also signed a definitive agreement with F&N regarding the proposed transaction which includes the general meeting with F&N shareholders and their acceptance of the transaction.

The final cash that will be offered to F&N will be S5.6bn ($4.47bn).

F&N has 39.7% stake in APB, while Heineken has 41.9% stake, however after the proposed transaction, Heineken will hold 81.6% stake in APB.

Heineken further plans to make a mandatory general offer (MGO) for all the shares of APB that the Heineken group does not already own.

When completed, the transaction will help Heineken generate long-term financial and strategic value for its shareholders and will have direct access to number of markets including Cambodia, China, Indonesia, Malaysia, New Zealand, Papua New Guinea, Singapore, Thailand and Vietnam.

Heineken executive board chairman and CEO Jean-François van Boxmeer said he is pleased that F&N’s Board has agreed its final offer, which represents good value for F&N and APB shareholders.

"Our Asian headquarters will continue to be based in Singapore, and we remain 100% committed to the growth and success of APB and the Tiger brand, just as we have been for the last 81 years," Boxmeer added.