SABMiller takes its $10-bn bid to Foster's shareholders

Global brewing and bottling giant SABMiller has taken its $10-billion (A$9.5 billion) takeover bid for Foster's Group directly to shareholders after Australia's largest brewer rejected its bid as being too low.

The board of Foster's had in June rejected SABMiller's initial offer of A$4.90 per share, which was a premium of 8.2 per cent to Foster's closing price of A$4.53 on 20 June, the day the offer was made. (See: Foster's rejects SABMiller's $10-bn bid)

The London and Johannesburg-listed brewer today said it would make a conditional, off-market, cash takeover offer of $4.90 per share, less the amount of any dividend or distribution paid or declared by Foster's after today.

The board of Melbourne-based Foster's has shown ''no willingness to engage,'' and "As there has been no willingness to engage in relation to SABMiller's proposal on the part of the Foster's board, SABMiller has decided to make an offer to Foster's shareholders directly," SABMiller said in a statement.

The offer is conditional on SABMiller receiving acceptances from 90 per cent of Foster's shareholders, which would then make it mandatory to acquire the remaining 10 per cent under Australian corporate law.

Taking the bid to Foster's shareholders has come as no surprise as SABMiller was in talks last week with a consortium of banks for a multi-billion dollar syndicated loan to fund its proposed takeover of Foster's, which would be among the biggest acquisition this year. (See: SABMiller talks to banks to launch fresh assault on Foster's)