Following recent press speculation, Leuven, Belgium-based Anheuser-Busch InBev (AB InBev) has submitted a new proposal to the Board of SABMiller plc, London, to combine the two beer companies.
AB InBev's new proposal comprises a cash offer of pounds 43.50 per share, with a partial share alternative available for approximately 41 percent of the SABMiller shares. The cash proposal represents a premium of more than 48 percent to SABMiller's closing share price of pounds 29.34 on Sept. 14, the last business day prior to renewed speculation of an approach from AB InBev.
Under the new proposal, SABMiller shareholders who elect for the partial share alternative will receive 0.483969 Restricted Shares and pounds 3.56 in cash for each SABMiller share. In the event that elections for the Restricted Shares represent more than 326 million Restricted Shares, then such elections will be reduced on a pro rata basis.
Based on the closing price of AB InBev's ordinary shares on Oct. 9 of Euros 98.30, the partial share alternative, including the GBP 3.56 in cash, would value each SABMiller share at pounds 38.88 per share, representing a premium of approximately 33 percent to the closing SABMiller share price of pounds 29.34 as of Sept. 14. This is based on an exchange rate of Euros 1.3469:pounds 1.0000, which was derived from data provided by Bloomberg as at 4:30 pm BST on Oct. 9.
The new proposal is pre-conditional on both Altria Group, Inc. and BevCo Ltd. undertaking to elect for the partial share alternative in respect of all of their SABMiller shares.
AB InBev will not be seeking the SABMiller Board's recommendation with respect to the partial share alternative.