Buy @ $2.97, $2.95
The drop started yesterday, after they announced the results of Myanmar Brewery arbitration. Will have to sell to Myanmar partner but prices will be based on a better valuation (> US$246m or ~S$313m => 21.7ct/share). Myanmar was driving the bulk of the growth for F&N due to the rapidly growing market in Myanmar and their dominant position. It'd be hard to replace… perhaps, a JV with ThaiBev for Chang Beer? Will take a long time…. but not impossible… 😀
There'll still be growth from other Beverages (soft drinks) as they're no longer constrained by Coca Cola (after giving up the franchise), Dairy Products and perhaps acquisitions… The much anticipated leverage on ThaiBev doesn't appeared to have taken off … altho' ThaiBev just did another announcement… their 2020 plans…