GLOBAL: AB InBev raises bid for SABMiller | Progresiv

Anheuser-Busch InBev has announced a revised offer for SABMiller, as part of its plan to merge the two groups. The new bid offers 42.15 pounds per share in cash, with a partial share alternative for around 41% of the SABMiller shares. The new offer values SABMiller at 68 billion pounds, with additional debt of 6.9 billion pounds. 

SABMiller has previously rejected two bids by AB InBev – at 38 pounds and at 40 pounds per share, both in cash. AB InBev said it was “disappointed” that SABMiller’s board had dismissed the previous bids “without any meaningful engagement”. It added that “this revised proposal should be highly attractive to SABMiller shareholders and provides an extremely compelling opportunity”. 

It also notes that the “partial share alternative enables appropriate financing to be achieved and supports the cash offer at a higher price than AB InBev would otherwise be able to offer”. That feature would see shareholders receive 2.37 pounds in cash and 0.48 restricted AB InBev shares in return for every SABMiller share. The restricted shares would be subject to a five-year lock-up, and would be unlisted on any exchange. 

Altria, SABMiller’s largest shareholder, has already backed the revised bid, saying a merger would create “significant value for SABMiller shareholders”. A combined group would have revenues of 64 billion dollars on EBITDA of 24 billion dollars, with a global presence.