Here’s why Fraser & Neave is still thirsty for acquisitions

It’s sitting on $700m, for starters.

Fraser & Neave (FNN) is still on the prowl for acquisitions, given its strong balance sheet and the business’ failed attempt to nab Grolsch & Peroni brands.

According to a report by DBS, FNN’s balance sheet continues to be robust, with $700m cash just waiting to be spent on acquisitions. In addition, DBS noted that FNN had acquired Warburg Vending for $29m.

Moreover, there have been announcements by management that it is itching to explore options. DBS asserted that FNN continues to be on the hunt for acquisitions, which could be relatively large following its unsuccessful for Grolsch & Peroni brands earlier this year.

“Based on our initial estimates, FNN 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,” DBS posited.

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