AB InBev calls on SABMiller shareholders not to let board prevent bid
Anheuser-Busch InBev hit back at SABMiller on Thursday after the London-listed brewer rebuffed its third approach, calling on its shareholders to push the board to engage in talks.
Anheuser-Busch InBev
€54.96
18:06 22/01/21
BEL 20
3,827.75
18:07 22/01/21
Beverages
22,467.12
17:10 19/04/24
FTSE 100
7,895.85
16:59 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
SABMiller
4,494.50p
08:34 05/10/16
AB InBev said it was surprised that the board of SABMiller continues to say that its proposal “still very substantially undervalues” the company, adding that this lacks credibility.
The Belgium-based brewer pointed out that the cash proposal represents a premium of around 44% to SABMiller’s closing price of 2,934p on 14 September, which was the last business day prior to renewed speculation of an approach.
In addition, it said that Altria Group, which owns 27% of SABMiller and has three representatives on the board, has publicly stated that it supports AB InBev’s proposal and “urges SABMiller’s board to engage promptly and constructively with AB InBev to agree on the terms of a recommended offer”.
Chief executive Carlos Brito said: “Notwithstanding our good faith efforts, the board of SABMiller has refused to meaningfully engage with us.
“Our proposal creates significant value for everybody. How long will it be before shareholders see a value of over £42 in the absence of an offer from AB InBev? If shareholders agree that we should be in proper discussions, they should voice their views and should not allow the board of SABMiller to frustrate this process and let this opportunity slip away.”
Nomura said it continues to recommend owning SABMiller given the likelihood of a deal, adding that it reckons a sweetened offer could come.
The bank said it expects SABMiller to put in place a strong bid defence. However, ultimately it believes the board of SABMiller is focused on maximising shareholder value rather than de-railing the potential deal.
“With no obvious white knight or poison pill, we find it hard to identify how SABMiller can create similar returns to shareholders in the current environment as ABI’s current proposal or a potentially sweetened offer.”
At 1210 BST, SABMiller shares were down 0.3% at 3,623p and AB InBev shares were off 0.7% at €98.00.