brewer ab inbev raises offer for sabmiller after pound dive
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

Brewer AB InBev raises offer for SABMiller after pound dive

Egypt Today, egypt today

Egypt Today, egypt today Brewer AB InBev raises offer for SABMiller after pound dive

Bottles of beer and cider produced by the Belgian-Brazilian group
Brussels - AFP

The world's top brewer Anheuser-Busch InBev raised its offer for rival SABMiller on Tuesday after a major slump by the British pound due to the Brexit vote threw the blockbuster deal into doubt.

Angry shareholders of London-based SABMiller were increasingly resisting the giant buyout, which before the Brexit vote was valued as much as $121 billion. 

In a statement, the Belgium-based brewer of Budweiser and Stella Artois said it raised its all cash offer for SABMiller from 44 pounds per share to 45 pounds in what was its final proposal.

The transaction now values SABMiller’s entire "issued and to be issued" share capital at around £79 billion ($103 billion), ABInbev said.

That includes a restricted share offer that is less attractive to investors as they must wait five years before cashing out. 

AB InBev agreed in November to buy SABMiller whose brands include Foster's, Grolsch and Peroni.

The Leuven, Belgium, based brewer said the new offer represents a premium of approximately 53 per cent to SABMiller’s closing share price when news of the negotiations first broke in September last year.

In a statement SABMiller said it "notes" the announcement by AB InBev.

"The board will continue to consult with shareholders and will meet in due course formally to review ... the revised offer and a further announcement will be made thereafter," the company said.

The deal is expected to boost world-leader AB InBev's prospects in developing markets in Africa and China.

AB InBev's acquisition of the London-based SABMiller is in line to be the third largest in history if it clears all regulatory hurdles.

But the deal's value fell sharply given the plunge in the value of the pound after Britain's vote to leave the European Union.

"The increase will cost AB InBev an additional 1.5 billion pounds or $2.0 billion at the current exchange rate," said ING bank in a note to clients.

"However, when comparing the previous offer at the prevailing exchange rate before Brexit ... with the increased offer at the current exchange rate, the latter is actually (more than) $3 billion lower in value," it added.

The mega deal was on its final stretch before the complications from Brexit, with approval secured by EU, US and South African regulators.

AB InBev has agreed to a series of concessions to win the greenlight from the competition authorities, including the sale of stakes in Snow Breweries in China.

It also agreed to sell most of SABMiller's European businesses, including Peroni and Grolsch which were bought by Japanese brewer Asahi.

 

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

brewer ab inbev raises offer for sabmiller after pound dive brewer ab inbev raises offer for sabmiller after pound dive



GMT 06:29 2011 Monday ,14 November

Matthew cruises to win at Ochoa Invitational

GMT 03:34 2017 Wednesday ,22 March

Tillerson to skip NATO meeting next month

GMT 13:44 2013 Friday ,15 March

Israel suppress Palestinian demonstrations

GMT 16:15 2017 Monday ,01 May

Moroccan Workers’ Syndicate

GMT 11:56 2016 Wednesday ,12 October

Toyota, Suzuki eye partnership as industry consolidates

GMT 15:42 2011 Thursday ,23 June

Express checks in with foursquare

GMT 10:49 2017 Sunday ,13 August

Car rams into crowd at violent Virginia rally

GMT 17:45 2013 Sunday ,20 October

5 Indian spices that are good for your health

GMT 08:41 2012 Saturday ,15 September

Italian magazine: will print Kate topless snaps

GMT 08:02 2012 Tuesday ,05 June

Zoe Saldana in Prabal Gurung
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday