Foster's finally accepts SABMiller's $10.2-bn takeover offer

Global brewing and bottling giant SABMiller's three-month pursuit of Foster's finally ended after the iconic Australian beer company today agreed to sell itself to the UK-listed brewer's sweetened offer of A$9.9 billion ($10.2 billion).

As part of the deal, SABMiller will return about 30 cents a share to Foster's shareholder as well as a final dividend for year to 30 June 2011, taking the deal size including debt, to A$11.5 billion ($11.78 billion).

Under its biggest ever acquisition, London-based SABMiller will pay A$5.10 a share in cash to Foster's shareholders, 4 per cent more that its original 21 June offer.

SABMiller has separately reached an agreement with Coca-Cola Amatil for acquiring its share of the Pacific Beverages Pty Limited joint venture should SABMiller acquire a controlling interest in Foster's.

"We are pleased that we reached agreement on a recommended transaction to be put to Foster's shareholders," said SABMiller CEO, Graham Mackay in a statement.

With beer brands like Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft among others, SABMiller had launched an A$9.5 billion, or A$4.90 a share bid for Foster's on 21 June (See: Foster's rejects SABMiller's $10-bn bid) and on 17 August took its offer directly to shareholders at the same price, (See: SABMiller takes its $10-bn bid to Foster's shareholders)  both of which were rejected by Foster's as being too low.