A BUSINESS Times report that former Singapore Telecommunications chief executive Lee Hsien Yang (picture) could take over as chairman of Fraser & Neave later this year gave the stock of the conglomerate a boost yesterday.
The shares rose as high as $5.10, but ended unchanged from Monday at $4.96 — also the day’s low — when no statement was issued by F&N.
Still, optimism continued to surround the stock — analysts are hopeful that with his track record at SingTel, Mr Lee could similarly push F&N forward should he take over.
F&N is one of Singapore’s oldest firms, involved in a large number of businesses including food and beverage, property, and printing and publishing.
It has a major stake in Asia Pacific Breweries, which makes Tiger Beer and Heineken in its regional breweries, and is 14.9-per-cent owned by Temasek Holdings.
F&N has been on a manhunt for someone to succeed non-executive chairman Michael Fam, who was executive chairman from 1988 to January last year.
According to F&N’s website, Dr Han Cheng Fong took on the role of Group CEO in February that same year. The report said Dr Fam will likely remain as adviser to the firm.
Mr Lee, a Cambridge University graduate, joined SingTel in April 1994 and became CEO in May 1995. He made headlines in July last year when he said he was stepping down.
Under his leadership, SingTel had embarked on an aggressive international expansion strategy with forays into the Asian and Australian telecommunications markets.
The company now boasts annual revenues of $13 billion and profits of over $3 billion.
Its $13-billion acquisition of Australian telco Optus in 2001 raised a few eyebrows, with SingTel’s stock bearing the brunt of an Aussie backlash as analysts urged investors to reduce their SingTel holdings.
However, things began to pick up for Optus the following year, and it is now one of the biggest contributors to SingTel’s coffers.
Aside from his prospective chairmanship at F&N, Mr Lee is also the chairman of Republic Polytechnic, a governing board member at the Lee Kuan Yew School of Public Policy and international advisory board member at British enginemaker Rolls Royce.
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