TOKYO, July 27, 2010 (AFP) – Shares in Kirin Holdings, one of Japan's top beer companies, slid in Tokyo trade Tuesday on the announcement that it would acquire a 14.7 percent stake in one of Southeast Asia's biggest drinks makers.

Kirin shares fell as low as 0.60 percent to 1,145 yen before recovering slightly, after the company said it would buy an 84.6 billion yen (973 million dollar) stake in Singapore's Fraser & Neave, the maker of Tiger beer.

Kirin said it signed an agreement Monday to buy the shares from Singaporean sovereign wealth fund Temasek Holdings in a transaction due to be completed Thursday.

The Japanese company has looked to invest in growing markets in Asia to offset a sluggish demand picture at home, with many Japanese firms increasingly hamstrung by a shrinking population and weak economy.

The deal illustrates Kirin's ambitions to expand its reach in Southeast Asia and will be its first major acquisition following a failed merger with local rival Suntory in February, but met with a muted reaction from markets Tuesday.

Investment bank JPMorgan said the market had expected a bigger commitment and that synergies between both beer businesses would be "limited", Dow Jones Newswires reported.

However, in Singapore Fraser & Neave shares rose 2.1 percent to hit a new 52 week high of 5.92 Singapore dollars on the news.

"Kirin has guided that it has the ambition to become a leading F&B player in Asia and Oceania. The acquisition of a larger stake in F&N going forward is a possibility," said banking group CIMB in a research note.