Brexit forces changes to 'megabrew' deal

AB InBev boosts offer for SABMiller

By Rachel Arthur contact

- Last updated on GMT

AB InBev boosts offer for SABMiller

Related tags: Ab inbev, Stock market, Sabmiller

AB InBev has revised the terms of its offer for SABMiller: now offering £45 in cash per share, up from the £44 per share set out in November 2015. 

AB InBev, the world’s largest brewer, has boosted its takeover offer for SABMiller after Britain’s vote to leave the EU resulted in a fall in the pound.

This reduced the attractiveness of the November offer​ for SABMiller shareholders.

AB InBev says the terms of today’s offer are final. It now values SABMiller at approximately £79bn ($103.4bn).

In November – at the exchange rates of the time – the deal was valued at £71bn / $107bn.

AB InBev says the £45 per share offer represents a premium of around 53% to SABMiller’s closing share price of £29.34 on the 14 September 2015 (the last business day before renewed speculation about an approach began last year).

It is also a premium of around 39% to SABMiller’s three month volume weighted average share price of £32.31, to September, 14, 2015.

This cash consideration is accompanied by a partial share alternative. 

A statement from SABMiller this morning says: "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’s takeover of SABMiller is due for completion in the second half of 2016. Regulatory approvals have been gained in the US​, the EU​ and South Africa​ among others. A decision from regulators in China is expected soon.  

Related topics: Beer

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