8th Oct 2015 09:41
LONDON (Alliance News) - Anheuser-Busch InBev NV Thursday said it was "surprised" that SABMiller thinks the takeover bid the former proposed on Wednesday undervalues the latter.
AB InBev proposed an offer of GBP42.15 per share in cash for SABMiller plus a partial share alternative for up to 41% of SABMiller's shares, valuing the drinks giant at around GBP68.2 billion.
SAB rejected the offer, however, saying that it "substantially undervalues" the company.
On Thursday, AB InBev responded to the rejection saying it "lacks credibility" due to the fact that the cash proposal represents a premium of approximately 44% to SABMiller's closing share price of GBP29.34 on September 14, and because it has the backing of SAB's largest shareholder Altria Group Inc.
SABMiller also raised concerns that AB InBev had not provided any comfort surrounding the significant regulatory hurdles it would face in the US and China, to which AB InBev responded that it has "done significant work on regulatory matters and has identified solutions that provide a clear path to closing", and that it intends to work proactively with regulators to resolve any concerns.
"Notwithstanding our good faith efforts, the board of SABMiller has refused to meaningfully engage with us. Our proposal creates significant value for everybody. How long will it be before shareholders see a value of over GBP42 in the absence of an offer from AB InBev? If shareholders agree that we should be in proper discussions, they should voice their views and should not allow the board of SABMiller to frustrate this process and let this opportunity slip away," Chief Executive Carlos Brito said in a statement.
Shares in SABMiller were trading up 0.3% at 3,642.50 pence Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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