F&N could be on the lookout for acquisitions

It currently has $700m available cash to buy assets.

DBS Vickers Securities believe that Frasers and Neave (F&N) continues to be on the prowl for acquisitions, which could be relatively large moving forward.

The research house notes that F&N's balance sheet remains strong. Its net cash is currently at S$900m as of end FY16, with about S$700m available to pursue business acquisitions.

F&N recently acquired Warburg Vending for S$29m and management has announced that it is keen to explore options.

Based on DBS Vickers Securities' initial estimates, F&N would be able to embark on these acquisitions, but funding would be via a mix of debt and equity, coupled with its current internal resources.

The research house believes management is likely to pursue opportunities in the IndoChina region.

Most recently, FNN placed a bid for the Grolsch/Peroni brands from SAB, which was eventually won by Asahi. It was also said to be keen to increase its stake in Vinamilk.

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