AB InBev Again Raises Takeover Offer For SABMiller

12-Oct-2015 - Belgium

Belgian brewer Anheuser-Busch InBev NV, known as AB InBev said Monday that it has raised its takeover bid for British brewer SABMiller Plc to 43.50 pounds per share in cash, or $66.8 per share. The new offer reportedly values SABMiller above $100 billion.

The offer to merge the world's two biggest brewers also includes a partial share alternative available for about 41 percent of the SABMiller shares. The latest proposal by AB InBev, its fourth for SABMiller, comes just two days before the expiry of the deadline for a formal offer. Under the improved proposal, SABMiller shareholders who elect for the partial share alternative will receive 0.483969 restricted shares and 3.56 pounds in cash for each SABMiller share.

The revised offer would value each SABMiller share at 38.88 pounds per share.This representing a nearly 33 percent premium to SABMiller's closing stock price of 29.34 pounds on September 14, 2015, the last business day prior to renewed speculation of an approach from AB InBev. AB InBev noted that sweetened offer is pre-conditional on both Altria Group, Inc. (MO), SABMiller's largest shareholder, and BevCo Ltd. undertaking to elect for the partial share alternative in respect of all of their SABMiller shares.

The company added that it expects most SABMiller shareholders, other than Altria Group, Inc. and BevCo Ltd., would wish to elect for the cash offer. Altria and BevCo Ltd. together hold about 41 percent of SABMiller shares. Altria has supported AB InBev's proposal. SABMiller reportedly wants AB InBev to pay a price closer to 45 pounds per share. SABMiller, which has not entered into formal talks with AB InBev as it has viewed the previous proposed bids by AB InBev as too low, must agree to a deal or seek an extension by 5 p.m. on October 14, or else the transaction risks falling apart.

SAB Miller, the brewer of Peroni and Foster's beer, has rejected all the three previous offers made AB InBev - of 38.00 pounds per share in cash, 40.00 pounds per share in cash, and 42.15 pounds per share in cash with a partial share alternative for about 41 percent of SABMiller shares.

Meanwhile, some of SABMiller's shareholders have urged the company's board to engage in talks with AB InBev on its takeover offer. Altria Group has earlier said that it supports the revised offer from AB InBev for SABMiller and has urged SABMiller's board to engage with AB InBev to agree on the terms of the offer. BUD is trading at $112.31, up $0.43 or 0.38 percent on a volume of 139,817 shares. On the London Stock Exchange, SAB.L is trading at 3,699.50 pence, up 31.00 pence or 0.85 percent on a volume of 3.87 million shares. (dpa)

https://www.yumda.com/en/news/1146278/ab-inbev-again-raises-takeover-offer-for-sabmiller.html