ThaiBev was recently granted a S$2.8-billion loan facility by three international banks for the acquisition. The group has also approached major Thai banks, including Bangkok Bank, Krungthai Bank and Kasikornbank for additional financing.
"We stand ready for discussions on terms and conditions," said an executive at a Thai bank who asked not to be named. "Things are not quite resolved as the transaction is in Singapore dollars while Thai banks lend mostly in US dollars and baht. ThaiBev will need to weigh foreign exchange risks."
The banker admitted that this is a big deal and Thai banks are also subjected to a strict rule that stipulates that loans to a business group must not exceed 25 per cent of its capital fund. Still, he is convinced that the group prefers a bridge loan facility and could later issue new shares, to reduce the interest cost.
"Profiteering" is rumoured to be the reason behind ThaiBev Group's move, which raised tension over the tussle for APB. If Kindest Place's move is successful, its stake will rise to 16 per cent.