AB InBev pushes out offer date

SABMiller has asked that Anheuser-Busch InBev’s R1.5 trillion offer deadline be pushed out.

|||

Johannesburg - SABMiller has asked that the deadline Anheuser-Busch InBev’s R1.5 trillion offer for the South African brewer to be made firm be pushed out.

Earlier in October, AB InBev put a 44 pound per share offer on the table to buy out SABMiller - the world’s largest brewer.

SABMiller’s board subsequently accepted the offer, the final of several made by the Belgium-based brewer.

Should the deal go ahead, it will be the third-largest corporate deal in the history of business, and create a brewing giant as AB InBev is the world’s largest brewer.

In an update to shareholders issued Wednesday morning, AB InBev said SABMiller had requested that the Panel on Takeovers and Mergers extend the deadline for a firm offer to be made.

This is so talks between the two companies can continue.

AB InBev has also offered SABMIller’s largest shareholders the opportunity to remain invested in the new company through a share and cash combination. The brewing giant is set to seek a listing on the JSE.

AB InBev was required to either announce a firm intention to make an offer for SABMiller by today. The parties are now requesting that this be pushed out to November 4.

The Belgium brewer has finished its due diligence and has organised facilities to pay out the cash portion.

The deal remains subject to conditions.

Meanwhile, AB InBev has had talks with the South African government's pension investment arm, the Public Investment Corporation, which is against the offer. The bid will create a company that makes one out of every three beers drunk across the globe and could face competition hurdles in SA.

AB InBev is keen on the number 2 brewer because of its African footprint, which it sees as offering a growth target. SABMiller also has a presence in the US, through its Miller brand, and in several Latin American countries, which are also seen as emerging market economies.

IOL