CIMB Research cut its target price for Singapore conglomerate Fraser and Neave to S$9.85 from S$10, and kept its 'outperform' rating, after taking into account a 15 percent discount to its property assets.

By 0242 GMT, F& N shares were down 0.2 percent at S$8.38, but have gained 35 percent so far this year, compared to the Straits Times Index's 15.9 percent gain.

F& N's board last week approved a sweetened $6.35 billion offer from Dutch brewer Heineken for Asia Pacific Breweries Ltd , the maker of Tiger Beer.

If the sale of F& N's beer affiliate APB is successful, property will account for more than 80 percent of F& N, CIMB estimated, thus it is now applying a 15 percent discount to F& N's property restated net asset value.

" This deal looks set to go through if Thai Bev and Kirin play ball. The potential for special dividends, reinvestment upside and more corporate actions are the expected catalysts for the stock," said CIMB in a note.