FDBusiness.com

Having already had two private proposals to acquire SABMiller rejected, Anheuser-Busch InBev has now made a revised bid of £42.15 per share in cash, with a partial share alternative available for approximately 41% of the SABMiller shares. The offer values SABMiller at £68.24 billion ($104 billion).

A combination of the world’s two largest brewers would create a group that would generate revenues of US$64 billion and EBITDA of US$24 billion. The combination of AB InBev and SABMiller would result in a truly global brewer that would take its place as one of the world’s leading consumer products companies. Given the largely complementary geographical footprints and brand portfolios of AB InBev and SABMiller, the combined group would have operations in virtually every major beer market, including key emerging regions with strong growth prospects such as Africa, Asia, and Central and South America.

AB InBev has made two prior written proposals in private to SABMiller, the first at £38.00 per share in cash and the second at £40.00 per share in cash. AB InBev is disappointed that the Board of SABMiller has rejected both of these prior approaches without any meaningful engagement.

AB InBev believes that this revised proposal should be highly attractive to SABMiller shareholders and provides an extremely compelling opportunity for them. The cash proposal represents a premium of approximately 44% to SABMiller’s closing share price of £29.34 on 14 September 2015, the last business day prior to renewed speculation of an approach from AB InBev.

AB InBev believes that the revised cash proposal of £42.15 per share is at a level that the board of SABMiller should recommend.

“We have the highest respect for SABMiller, its employees and its leadership, and believe that a combination of our two great companies would build the first truly global beer company,” says Carlos Brito, chief executive of Anheuser-Busch InBev. “Put simply, we believe we can achieve more together than each of us could separately, bringing more beers to more people and enhancing value for all of our stakeholders.”