Johannesburg - Anheuser-Busch InBev has expressed surprise that SABMiller’s board says its $100 billion- or R1.4 trillion - offer for the world’s second-largest brewer is undervaluing the company.
AB InBev on Wednesday put a £42.15 a share offer on the table for the brewer, which as its origins in SA. This came after two previous bids were rejected by SABMiller.
In a statement issued on Thursday - after SABMiller said the offer was too low - AB InBev noted the rejection - by all directors expect those nominated by SABMiller’s largest shareholder, Altria - is not based on credible facts.
This, it says, is because the cash proposal represents a premium of about 44 percent to SABMiller’s closing share price of £29.34 on September 14, which was the day before market speculation started swirling.
AB inBev also notes Altria Group, which owns 27% of SABMiller and has three representatives on the board, has publicly stated that it supports its proposal and “urges SABMiller’s board to engage promptly and constructively with AB InBev to agree on the terms of a recommended offer”.
A merged company would produce one out of every three beers made globally and control dozens of brands such as the American Budweiser and Belgium’s Stella Artois from InBev’s side, and Miller Lite, Pilsner Urquell, and Foster’s from SAB.
On Wednesday, SABMiller chairman Jan du Plessis said “AB InBev is very substantially undervaluing SABMiller”. He also noted, while “AB InBev needs SABMiller, [it] has made opportunistic and highly conditional proposals, elements of which have been deliberately designed to be unattractive to many of our shareholders”.
AB InBev has hit back at the world’s second-largest brewer’s issues, noting it has done “significant work on regulatory matters and has identified solutions that provide a clear path to closing. AB InBev intends to work proactively with regulators to resolve any concerns.
“AB InBev has repeatedly offered to share this analysis with SABMiller and its advisers. Each time the Board of SABMiller has refused to engage. “
On Wednesday, AB InBev CEO Carlos Brito also highlighted how attractive its offer was, saying Brito said the it would take the stock three to four years to reach the bid level on its own. Yet, Du Plessis says the brewer is “uniquely positioned to continue to generate decades of standalone future volume and value growth for all SABMiller shareholders from highly attractive markets”.
IOL