Foster’s urges shareholders to reject SABMiller bid
Australian brewer Foster’s has urged its shareholders to reject a bid from takeover suitor SABMiller.
The Foster’s Board believes the offer “significantly undervalues” the company and has written to shareholders asking them to spurn SABMiller’s offer to buy all the shares in the company at a price of $4.90 per share.
In a letter sent to shareholders today, Foster’s chairman David Crawford wrote, “Your board unanimously recommends you reject SABMiller’s offer.
“You will soon receive a document from SABMiller called a Bidder’s Statement which will provide information in relation to SABMiller’s offer. You should take no action when you receive this document. Do not fill in any documents sent to you by SABMiller.
“While your Board will always act in the best interests of shareholders and will therefore give due consideration to any bona fide offers it receives, your Board also believes there is significant future value available to you, as a shareholder, if Foster’s remains an independent company. The long term fundamentals of the beer and cider categories in Australia remain strong,” Mr Crawford said.
Mr Crawford pointed out that Foster’s declared a dividend of 13.25 cents per share on 23 August 2011. Therefore, SABMiller’s offer price is now $4.7675 per share.