AB InBev increases cash price offer for SABMiller’s shareholders
AB InBev, the global beer behemoth in the midst of acquiring SABMiller, its nearest rival has increased its cash price share offer for SABMiller to £45 per share, from £44 in November 2015. The company made the offer in the face of dissension from activist investors of SABMiller who are demanding a review of the offer. Since the BREXIT vote for Britain to leave the European Union, the pound sterling has depreciated.
AB InBev said the terms of today’s offer are final. It now puts a value of the transaction at £79bn ($103.4bn), a change from £71bn ($107bn) in November 2015.
The brewer of Budweiser, Stella Artois, Brahma, among others said the new offer represents a premium of around 53% to SABMiller’s close share price of £29.34 on 14th September 2015, the last business day before renewed speculation about an approach began last year.
The cash consideration is accompanied by a partial share alternative.
In a statement from SABMiller today, the brewer said:
“The Board of SABMiller confirms that on 22 July its Chairman had a conversation with the Chairman of AB InBev about AB InBev’s offer for SABMiller in light of recent exchange rate volatility and market movements.
“There was no discussion or agreement about the terms of today’s Revised Offer.
“The Board of SABMiller confirms that last week it engaged Centerview Partners to provide additional financial advice alongside that of its existing financial advisers.
“The Board will continue to consult with shareholders and will meet in due course formally to review, having regard to all facts and circumstances, the Revised Offer and a further announcement will be made thereafter.”
AB InBev is expected to close the merger deal in the second half of 2016.