Singapore conglomerate, Fraser & Neave has said that it has turned down a bid valued at 1.4 billion Singapore dollars, or $1.1 billion for its hospitality and serviced residence business.

The conglomerate did not announce the name of the bidder behind the unsolicited bid for the unit,

The conglomerate is present in various sectors and its hospitality unit operates serviced apartments in more than 20 Asian and European cities under various brands such as Fraser Suites, Fraser Place and Fraser Residence.

"The board views the hospitality and serviced residence business to be an integral part of the property arm of the company," Fraser & Neave wrote in a filing with the Singapore stock exchange.

Fraser & Neave also said that it is not permitted to sell substantial assets under the country's securities law due to an already existing takeover offer. The hospitality business has been targeted by Thai billionaire Charoen Sirivadhanabhakdi. Sirivadhanabhakdi had launched a bid valued at 8.8 billion Singapore dollars, or $7.2 billion for 70 percent of Fraser & Neave.

The shareholders of Fraser & Neave have until October 29 to vote on the offer. However, many believe that the $1.1 billion bid suggests that Mr. Charoen's offer undervalues the conglomerate.