Subscriber login Close [x]
remember me
You are not logged in.

Improved AB-Inbev bid not enough to tempt SAB Miller board

Published:  07 October, 2015

SAB Miller seems certain to reject an improved offer for the company from AB-Inbev.

Ab-Inbev has offered £42.15 per SAB Miller share - an increase on two previous proposals - valuing SAB Miller at £68 billion.

SAB Miller said this morning that the board would meet "as soon as practicable" to discuss the deal but said that the latest bid represented only a small increase on the previous offer.

It said previous approaches had been rebuffed because "the proposals very substantially undervalue SAB Miller and its stand alone prospects and growth potential".

It also claimed "the approach has been timed opportunistically to take advantage of SAB Miller's recently depressed share price".

Chairman Jan du Plessis said: "SAB Miller is the crown jewel of the global brewing industry, uniquely positioned to continue to generate decades of stand alone future volume and value growth for all SAB Miller shareholders from highly attractive markets.

"AB-Inbev needs SAB Miller but has made opportunistic and highly conditional proposals, elements of which have been deliberately designed to be unattractive to many of our shareholders.

"AB-Inbev is very substantially undervaluing SAB Miller."

Ab-Inbev said that SAB Miller had met its previous proposals "without any meaningful engagement".

Chief executive officer Carlos Brito said: "We have the highest respect for SAB Miller, its employees and its leadership, and believe that a combination of our two great companies would build the first truly global beer company.

"Both companies have deep roots in some of the most historic beer cultures around the world and share a strong passion for brewing as well as a deep-seated tradition of quality.

"By bringing together our rich heritage, brands and people we would provide more opportunities for consumers to taste and enjoy the world's best beers.

"Put simply, we believe we can achieve more together than each of us could separately, bringing more beers to more people and enhancing value for all of our stakeholders."

The combined business would bring together AB-Inbev's Stella Artois, Beck's, Budweiser and Corona with SAB Miller's Peroni and Pilsner Urquell.