AB InBev bid for SABMiller likely to be 40% in stock; analysts estimate knockout bid range of GBP 3.90 to GBP 4.50 per share
A takeover bid for FTSE-100 brewing company SABMiller [LON:SAB] by Belgian rival Anheuser-Busch InBev [EBR:ABI] would probably involve at least 40% of the bid being offered in AB InBev shares, according to an analyst cited by The Times. The analyst argued that financing an offer with that proportion of stock would allow SABMiller shareholders the Santo Domingo family and Altria to stay invested in the brewing sector.
Altria owns a 27% stake in SABMiller, while the Santo Domingo family holds 12%, the item said. The article also noted that the private equity firm 3G Capital is an investor in AB InBev.
SABMiller on Wednesday, 16 September confirmed that it had been informed by AB InBev that the Belgian brewing company intends to submit a takeover offer. SABMiller added that it has yet to receive an offer from AB InBev or any further details regarding the potential bid.
Most analysts cited by The Times report thought that AB InBev would pitch its opening offer at 4000p per share, although analysts at Nomura thought that the Belgian group would offer 4400p.
Analysts cited by a Financial Times report estimated that a knockout offer for SABMiller would be priced at between 3900p and 4500p per share. That range represents a valuation of GBP 63bn (EUR 86.52bn) to GBP 73bn for SABMiller.
SABMiller’s African joint venture with the French company Castel might be a complicating factor in any takeover by AB InBev, the FT article said. Should Castel walk away from the joint venture, SABMiller’s African business - a key aspect of any deal given AB InBev’s very limited presence in the continent - would be considerably less attractive, the report said.
Other potentially complicating factors include SABMiller’s bottling operations on behalf of Coca-Cola. AB InBev has similar deals with Coca-Cola’s rival PepsiCo, the item noted.
SABMiller’s share price closed 599.5p up at 3614.0p in London yesterday, valuing the company at GBP 58.47bn.