Thailand’s richest person Charoen Sirivadhanabhakdi is seeking to realign his sprawling business empire along clearer lines, as the beverage giant he founded exits a property firm he also controls.

Thai Beverage Pcl will offload its entire stake in Singapore-based Frasers Property Ltd to an asset holding company also owned by the billionaire, a Singapore stock exchange filing showed on Thursday. As part of a proposed share swap with TCC Assets, ThaiBev will increase its stake in Singapore-based food and beverage company Fraser & Neave Ltd (F&N). 

The proposed transaction will “cement our pure-play status by exiting the property business”, ThaiBev chief financial officer Prapakon Thongtheppairot said in the statement. 

ThaiBev’s 28.78% stake in Frasers Property will be reduced to zero after the transaction, which is subject to approval from shareholders in an extraordinary general meeting in Thailand. Conversely, TCC’s stake in Frasers will grow to 86.89% from the current 58.1%. ThaiBev’s stake in F&N will increase to 69.61% from 28.31%.

Shares in F&N in Singapore jumped 23% on Thursday morning, the biggest intraday gain since 2013, to S$1.32 . Frasers rose 4.4%, the most since January, paring this year’s decline to 6%. ThaiBev shares were halted from trading earlier. 

The proposed swap will be executed at a ratio of approximately 1.88 Frasers shares for each F&N share. That was based off a negotiated price of S$1.89 per Frasers share, and S$3.55 per F&N share. 

There had been speculation about the fate of Frasers after Dow Jones reported earlier this year that divestment was being considered as part of a strategic review. Charoen denied in January that the owners will sell their stake.

ThaiBev’s brands include SangSom rum, Grand Royal whisky and Chang beer. It backs F&N for its business lines in 100PLUS soft drinks and Magnolia dairy products.

F&N said in July last year that it will buy alcohol licences and land use rights to operate a brewery in Myanmar.

  - Bloomberg