SABMiller’s stance on AB InBev bid no longer so defensive, looking to secure large takeover premium; shareholder Allan Gray backs deal
SABMiller is now less defensive against a potential takeover by rival brewing group Anheuser-Busch InBev (AB InBev) and is focused on ensuring that the Belgian company offers a large takeover premium, The Sunday Times reported. The newspaper cited SABMiller insiders who at first said, following AB InBev’s initial bid approach a couple of weeks ago, that the UK-based brewer would defend strongly against a takeover.
However, SABMiller has taken a less defensive stance in the past week and is now keen to get a large takeover premium from AB InBev, the report added.
The article cited unspecified sources who said SABMiller and AB InBev have in recent days entered into “friendly” discussions. It is expected that AB InBev will table a firm initial offer within the next few days, possibly on Monday morning, 28 September, according to the report.
Pressure from SABMiller’s largest shareholders was a factor in the brewing company’s change of position regarding the bid, the item said, noting reports last week that the Virginia-based cigarette company Altria, which holds a 27% stake, has already had discussions with AB InBev in private.
The Santo Domingo family hold a 14% stake in SABMiller but their stance regarding the AB InBev offer is not as well known, the article continued. It is thought, however that the family sees merit in the idea of owning a smaller shareholding in a merged group, the report added.
The article went on to quote the chairman of SABMiller shareholder Allan Gray, Ian Liddle, who said he does not understand how trying to derail an offer would be in shareholders’ best interest. Allan Gray, a South African property company, is one of SABMiller’s largest investors with a stake worth GBP 1bn (EUR 1.36bn), according to the newspaper.
SABMiller shares are listed in Johannesburg, South Africa as well as in London, the item noted. Allan Gray would back a takeover if the enlarged group was to retain the South African listing, the report said.
AB InBev and SABMiller refused to comment, the item said.
Analysts cited by the newspaper said AB InBev would need to pitch an offer at a minimum of 4500p per share to agree a deal.
SABMiller’s share price closed 84.5p up at 3588.0p in London yesterday, giving the company a market capitalisation of GBP 58.07bn.