Court Lets SABMiller Treat Biggest Shareholders as Separate Class in Takeover by AB InBev
August 23 2016 - 8:10AM
Dow Jones News
By Saabira Chaudhuri
LONDON--SABMiller PLC on Tuesday said a U.K. court had agreed to
its proposal that its two largest shareholders be treated as a
separate class from the rest of its investors with regard to its
pending acquisition by Anheuser-Busch InBev NV.
AB InBev last month raised its offer for SABMiller to £45 a
share from £44 a share to head off a possible shareholder revolt
following a slide in the British pound after the country's vote to
leave the European Union.
SABMiller's board after some deliberation approved that increase
but said it would ask that its two biggest shareholders, Altria
Group Inc. and the Santo Domingo family, be treated as a separate
voting class.
The plummeting pound against the dollar drove the value of AB
InBev's cash offer to SABMiller well below its alternative
cash-and-share offer because AB InBev shares are priced in euros.
Initially, the cash offer was designed to be a premium.
Some investors had complained about the discrepancy between the
two offers. The cash-and-stock offer was designed for Altria and
the Santo Domingos and is subject to a five-year lockup period
that most regular shareholders are unable to stomach due to
liquidity requirements.
Now AB InBev and SABMiller shareholders must vote on the deal,
expected to close this year. Treating Altria and the Santo Domingo
family as a separate class reduces the percentage of share holdings
needed to block the deal to 15% from 25%, according to analysis by
Stifel Nicolaus & Co.
The vote is scheduled for Sept. 28, and the deal is expected to
close Oct. 10.
Altria and the Santo Domingos have already committed to voting
in favor of the deal.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
(END) Dow Jones Newswires
August 23, 2016 07:55 ET (11:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Anheuser Busch Inbev SA NV (NYSE:BUD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Anheuser Busch Inbev SA NV (NYSE:BUD)
Historical Stock Chart
From Sep 2023 to Sep 2024