SABMiller goes straight to Foster’s shareholders
London-based multinational brewer SABMiller has mounted a more aggressive approach in its attempt to take over the Australian-based Foster’s Group Limited.
SABMiller has announced it is taking it is bypassing the Foster’s Group Limited board and making a A$4.90 per share bid directly to the shareholders.
The new direct offer to the shareholders comes just days ahead of the release of Foster’s fiscal-year financial results. The market is expecting these to be poor.
“As there has been no willingness to engage in relation to SABMiller’s proposal on the part of the Foster’s board, SABMiller has decided to make an offer to Foster’s shareholders directly,” a spokesperson for SABMiller said.
On 20 June 2011, SABMiller approached Foster’s with a confidential proposal to acquire all of the ordinary shares in Foster’s by way of a Foster’s recommended scheme of arrangement at A$4.90 per share in cash. On 21 June 2011, Foster’s announced that it had rejected the SABMiller proposal.
SABMiller now proposes, through its indirect wholly owned Australian subsidiary SABMiller Beverage Investments Pty Ltd, to make a conditional, off-market, cash takeover offer for all of the issued shares in Foster’s at A$4.90 per share.
SABMiller is being advised by J.P. Morgan, Moelis and Company, RBS and Morgan Stanley.