MO Altria Group Inc

By Saabira Chaudhuri 

LONDON--Anheuser-Busch InBev has responded to SABMiller PLC's rejection of its Wednesday offer to buy the world's second-largest brewer in a complicated cash-and-stock deal that the Belgian-based brewer insists is a good one for shareholders.

AB InBev said it is "surprised" that SAB's board, excluding the three directors nominated by Altria Group Inc., continues to say that the proposal "still very substantially undervalues SABMiller" adding that the claim "lacks credibility."

AB InBev, the world's largest brewer, noted that the cash part of the offer represents a 44% premium to SABMiller's closing price on Sept. 14, the day before media speculation about a possible deal surfaced. AB InBev on Wednesday offered to buy SABMiller for GBP42.15 ($64.57) in cash and offered what it called a partial share alternative for 41% of shares, which translates into a combination of stock and cash that has a combined lower value.

It added that it has the support of Altria, whose stake of more than 25% makes it SABMiller's largest shareholder. AB InBev also responded to the SABMiller board's Wednesday statement that the proposals were "highly conditional" and that AB InBev hadn't yet provided it with comfort about the regulatory hurdles in China and the U.S.

"Together with its advisers, AB InBev has done significant work on regulatory matters and has identified solutions that provide a clear path to closing," said the brewer in a statement. "AB InBev intends to work proactively with regulators to resolve any concerns."

SABMiller didn't immediately respond to a request for comment.

Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com

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(END) Dow Jones Newswires

October 08, 2015 06:13 ET (10:13 GMT)

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