AB InBev said it was surprised the SABMiller board said its takeover offer of 42.15 pounds per share, made public on Wednesday, “still very substantially undervalues” SABMiller.
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In a statement from the company shortly after AB InBev’s offer, SAB said management has already met to consider a $64 a share offer speculatively floated by AB InBev earlier in the week, but it had concluded that “it still very substantially undervalues SABMiller”.
The world’s largest brewer noted that the cash part of the offer represents a 44 per cent premium to SABMiller’s closing price on September 14, the day before media speculation about a possible deal surfaced.
A deal would create a global “megabrewer” worth about 220 billion euros (US$250 billion).
“How long will it be before shareholders see a value of over £42 in the absence of an offer from AB InBev?” asked Brito in his statement.
AB InBev is the world’s biggest beer business, while SABMiller is the global number two. Brito had said on Wednesday that SABMiller investors should call the chairman to force him to discuss the terms.
SABMiller’s largest shareholder, liked AB InBev’s latest overture and told SABMiller’s board to work “promptly” with the company.
AB InBev realistically needs access to SAB’s private financial data if it is to make an informed formal bid, but said that so far the board had not engaged meaningfully.
“AB InBev intends to work proactively with regulators to resolve any concerns”, the world’s biggest brewer said in a filing to the London Stock Exchange. Craft brewers rely on larger beer producers for distribution and in many states, InBev dominates the channels between beer wholesalers and retailers.
AB InBev doesn’t have “tremendous room” to raise the price, because the cost savings from this purchase won’t be as big as in the brewer’s past acquisitions, he said. A spokesman for SABMiller declined to comment on AB InBev’s statement.
The deal sought by Belgian-Brazilian AB InBev would create a global “megabrewer” that would bring together internationally famous brands such as the iconic U.S. beer Budweiser and Stella Artois with Grolsch and Foster s.
AB InBev said it expected most SABMiller shareholders would accept the all-cash offer and could re-invest their proceeds in its listed ordinary shares if they wanted to maintain a holding.
Sports Direct worldwide Plc declined 4% to 744.50 pence after the U.K.-based sports and leisure products retailer agreed to acquire full control of Ireland-based clothing retailer Warrnambool owned by Northern Ireland-based homewares retailer Heatons for 47.5 million.
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London’s benchmark FTSE 100 index finished up 0.16% to 6,336.35 points, in a market where rising heavyweight mining stocks were offset by declines in airline shares.
