Thai Beverage Pcl is in talks with banks for financing of about $9 billion as it considers a bid for the rest of the shares in Fraser & Neave it doesn’t already own, two people familiar with the matter said.

The loan is expected to be denominated in Singapore dollars and other terms such as tenor and structure haven’t been determined, one of the people said, asking not to be identified because the details are private.

About six banks, including lenders from Singapore and Malaysia, are involved in the talks, the people said. Any financing is also expected to involve HSBC Holdings Plc and Standard Chartered Plc, two of the three banks which provided Thai Beverage with a $2.8 billion bridge loan to back its initial purchase of shares in F& N, one of the people said.

Thai Beverage is seeking to expand its business in Asia through F& N’s networks, Chief Executive Officer Thapana Sirivadhanabhakdi told reporters in Bangkok yesterday. Sirivadhanabhakdi couldn’t immediately be reached for comment on the potential $9 billion financing today. Jenny Yeo, a Singapore-based Thai Beverage spokeswoman who works for Kreab Gavin Anderson, declined to comment.

Thailand’s biggest beer maker agreed last month to pay $2.78 billion for a 22% stake in Singapore-based F& N, a 129-year-old conglomerate with businesses ranging from brewing and soft drinks to shopping malls and apartment buildings. The move prompted Heineken NV to bid $5.6 billion for a controlling stake in Asia Pacific Breweries, which is partly owned by F& N.

MANDATORY OFFER
Thai Beverage, which is listed in Singapore, has since raised its stake in F& N to 29%, less than the 30% that would trigger a mandatory offer for the company.

The company is considering replacing the $2.8 billion bridge loan with longer-term debt, two people familiar with the matter said Sept. 4. It may consider taking out the 12-month facility with debt that has a maturity of three, five or seven years, those people said.

The bridge facility from HSBC, Standard Chartered and Sumitomo Mitsui Banking Corp. pays a so-called all-in rate of about 180 basis points to 190 basis points more than benchmark rates, the people said last week.