AB Inbev Responds to SABMiller Rejection
October 08 2015 - 6:40AM
Dow Jones News
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 £
42.15 ($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 06:25 ET (10:25 GMT)
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