SABMiller Agrees To Be Acquired By AB InBev In Sweetened Offer
British brewer SABMiller Plc Tuesday announced that it has reached agreement in principle on the key terms of a possible recommended offer to be acquired by Belgian brewer Anheuser-Busch InBev NV, known as AB InBev.
Under the terms of the possible offer, SABMiller shareholders would be entitled to receive 44.00 pounds per share in cash, with a partial share alternative or PSA available for approximately 41% of the SABMiller shares. On Monday, AB InBev raised its takeover bid for SABMiller to 43.50 pounds per share in cash, or $66.8 per share.
The company now said the all-cash offer represents a premium of approximately 50% to SABMiller's closing share price on September 14, being the last business day prior to renewed speculation of an approach from AB InBev.
In addition, under the offer, SABMiller shareholders would be entitled to any dividends declared or paid by SABMiller. SABMiller said its Board has indicated to AB InBev that it would be prepared unanimously to recommend the all-cash offer to SABMiller shareholders.
AB InBev would agree to a "best efforts" commitment to obtain any regulatory clearances required to proceed to closing of the transaction. In addition, AB InBev would agree to a reverse break fee of $3 billion payable to SABMiller. (dpa)
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