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AB InBev and SABMiller reached agreement on takeover

Staff writer ▼ | October 13, 2015
The boards of AB InBev and SABMiller have reached agreement in principle on the key terms of a possible recommended offer to be made by AB InBev for the entire issued and to be issued share capital of SABMiller.
AB InBev
Acquisition   GBP 44 per share in cash
Under the terms of the possible offer, SABMiller shareholders would be entitled to receive GBP 44 per share in cash, with a partial share alternative (PSA) available for approximately 41% of the SABMiller shares.

The all-cash offer represents a premium of approximately 50% to SABMiller’s closing share price of GBP 29.34 on September 14, 2015 (being the last business day prior to renewed speculation of an approach from AB InBev).

The PSA consists of 0.483969 unlisted shares and GBP 3.7788 in cash for each SABMiller share, equivalent to a value of GBP 39.03 per SABMiller share on 12 October 2015, representing a premium of approximately 33% to the closing SABMiller share price of GBP 29.34 as of 14 September 2015. Further details of the PSA are set out below.

In addition, under the Possible Offer, SABMiller shareholders would be entitled to any dividends declared or paid by SABMiller in the ordinary course in respect of any completed six-month period ended September 30 or March 31 prior to completion of the possible transaction.

This shall not exceed $0.2825 per share for the period ended September 30, 2015 and a further $0.9375 per share for the period ended March 31, 2016 (totalling $1.22 per share) and shall not exceed an amount to be agreed between AB InBev and SABMiller in respect of periods thereafter (which shall be disclosed in any announcement of a firm intention to make an offer).

The Board of SABMiller has indicated to AB InBev that it would be prepared unanimously to recommend the all-cash offer of GBP 44 per SABMiller share to SABMiller shareholders, subject to their fiduciary duties and satisfactory resolution of the other terms and conditions of the Possible Offer.


 

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