Fresh bid for Foster’s expected from SABMiller
London-based SABMiller is expected to offer a renewed bid to acquire all shares in Foster’s Group Limited after the Australian brewer releases its full year results on 23 August 2011.
In June, Foster’s rejected SABMiller’s A$11.2bn bid to buy all shares in the company. The Board of Foster’s said the proposal “significantly undervalued the company”.
The Foster’s share price has now fallen below SABMiller’s original bid price and, according to reports, SABMiller has assembled a multi-billion-dollar syndicated loan in preparation.
Graham Mackay, Chief Executive of SABMiller said, “We believe that Foster’s represents an attractive opportunity for SABMiller to acquire a leading brewer in a stable profitable beer market. Foster’s is the Australian beer market leader, with a national footprint across all states and has a well-developed route to market.
“For some time, the company has lost market share and has been under-performing. We believe that this creates opportunities for us to apply our operational and commercial capabilities to enhance current performance and to use our global scale.”
Foster’s said it could not provide comment before its full year results are published. The brewer is being advised by Goldman Sachs, Gresham and Allens Arthur Robinson.