The battle brewing: AbInBev raises and provides 92.4 billion for SabMiller – The Republic

Milan – Ab InBev, the brewing giant that has among its brands Budwaiser, Corona and Beck’s, raises the competitor Sabmiller. After seeing herself rejected two offers, the latest of which 40 pounds a share, it has presented a third from 42.15 pounds for a value of 68.2 billion pounds, equivalent to about 92.4 billion euro.

At this point it is possible that the marriage between billionaire giants beer do: as reported Bloomberg, SabMiller would be willing to refuse the first offer of AbInBev, considering. For the manufacturer of Peroni and Foster’s (to name a few brands), AB InBev had put on the plate just over 40 pounds per share, while managers and some shareholders argue that fair value is at least 45 pounds. In absolute terms, would SabMiller 98.6 billion to EUR 87.7 against the first offer.

92.4 billion on the plate, however, are still not enough: the proposal is “opportunistic” “highly conditioned” and is “underestimating substantially” SabMiller, he said in a statement its chairman, Jan du Plessis but after a series of informal exchanges, takes note of the fact that the board is finally at a final proposals.

The selection of AbInbev, the biggest development this year, aims to bring together the two largest producers in the world of beer and follows two previous proposals made in confidence by Inbev, one at 38 pounds per share, a 40 pounds a share, both rejected. “Ab InBev – explains a note – is disappointed by the fact that the board of SabMiller rejected both of these previous offerings without any significant commitment.”

The latest offer of SabMiller, is 44% higher than the closing price of the 14 September, before the spreading of the rumors about the ‘advances’ of AB InBev, and provides for the possibility of an alternative with a part in shares reserved for the 41% stake in SabMiller. The group that controls Budweiser defines its offer “highly attractive” for shareholders. Altria Group, the main shareholder SabMiller, has already lined up in favor of AB Inbev urging the board to agree to an offer that “would create significant value for shareholders of SabMiller”.

“We believe the combination the two companies would build the first batch of beer truly global, “said Carlos Brito, CEO of InBev. Together Ab Inbev and SabMiller would create a giant 64 billion in revenues and an EBITDA of 24 billion dollars. The Public Investment Corp, a pension fund of state of South Africa, has however expressed negatively with respect to the takeover that would harm consumers and potentially deprive the title of SabMiller from the Johannesburg Stock Exchange. SabMiller has meanwhile announced that net revenues for producers (npr) rose by 6% on year in the second quarter at constant exchange rates, driven by Africa and Latin America. In the first half of the year they increased by 4%. But at current exchange rates, they fell by 9% in both periods due to the depreciation of the currencies of reference against the dollar.

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