SABMiller agrees to buy Foster's

21 September 2011 Last updated at 10:21 GMT Foster's has been the subject of takeover talks since it split its beer and wine business Brewing giant SABMiller has agreed to buy Foster's in a deal that values Australia's largest brewer at 9.9bn Australian dollars ($10.2bn; £6.5bn).

Fosters had rejected SAB's previous bid worth A$9.5bn, saying it undervalued the company.

However, the Foster's board said it would be recommending the latest offer to its shareholders.

If accepted, SAB, whose brands include Grolsch and Peroni, expects to complete the deal by the end of the year.

Shareholders should receive the offer documents in about six weeks, the brewer said.

The proposal allows for Foster's to walk away from the deal for A$99m if a higher bid is accepted and completed within 12 months.

'Outstanding portfolio'

SAB said the deal would give it access to Australia's "strong economic growth prospects", as well as the country's "stable and profitable" beer industry.

"We look forward to working with Foster's employees and other stakeholders to ensure the success of Foster's in the future as the largest brewer in Australia with an outstanding portfolio of brands," said SAB's chief executive Graham Mackay.

The agreed offer values Foster's shares at A$5.10, compared with the original offer of A$4.90 a share made in June.

There have been talks of a takeover of Foster's since it announced plans to break itself into two parts last year.

The brewer spun-off its troubled wine business, which had been seen as deterring potential suitors.

Any purchase of Foster's by SAB will not include the Foster's lager brand in the UK and Europe, where it is owned by Heineken.

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SAB in hostile bid for Foster's

17 August 2011 Last updated at 17:26 GMT Foster's has been the subject of takeover talks since it split its beer and wine business Brewer SABMiller has announced plans to make a second bid to take over Foster's Group, Australia's biggest brewer, this time direct to shareholders.

The board of Foster's rejected SAB's initial 9.5bn Australian dollars ($10bn; £6.1bn) offer in June, saying it was too low.

SAB, which owns brands such as Grolsch and Peroni, said the bid was attractive and should be put to shareholders.

Foster's has been the subject of takeover rumours since last year.

Continue reading the main story Martin Plaut Africa editor, BBC News

SABMiller is one of the most successful companies ever to be launched in Africa. Founded in South Africa in 1895, its Castle beer came to dominate the local market.

But until the end of apartheid, it was really only a southern African organisation. It had generated large sums of money, which it had used to build up a many interests - including hotels, shoe manufacturing and windscreen production.

In the 1990s it changed tack. Its non-brewing assets were sold and the company moved its headquarters to London. SABMiller went on a spending spree - buying up breweries in Latin America, Eastern Europe and the Far East.

Even before the Foster's bid, SABMiller was the second largest brewing company in the world, with 70,000 employees.

But like a number of other companies that started in South Africa, the company has only a residual relationship with its origins.

"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," the UK-based company said in a statement.

There have been talks of a takeover of Foster's since it announced plans to break up the company into two parts last year.

The brewer spun-off its troubled wine business, which had been seen as deterring potential suitors.

Foster's beer operations and the wine business, Treasury Wine, were listed separately in May.

Any purchase of Foster's by SAB will not include the Foster's lager brand in the UK and Europe, where it is owned by Heineken.

SABMiller shares ended Wednesday 1% higher at 2,139 pence.

Its bid values Foster's at $4.90 per share. The Australian company's shares closed at $4.96 on Wednesday.

Foster's shares peaked at $5.21 in June after it rejected SABMiller's initial bid approach.

SAB must gain the acceptance of at least 90% of Foster's shareholders for the takeover attempt to succeed.

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Foster's urges rejection of bid

18 August 2011 Last updated at 06:57 GMT Foster's has been the subject of takeover talks since it split its beer and wine business Foster's, Australia's largest brewer, has recommended that its shareholders reject SABMiller's latest takeover bid, saying it "undervalues" the firm.

The board of Foster's had rejected SAB's initial 9.5bn Australian dollars ($10bn; £6.1bn) offer back in June, saying then that it was too low.

Since then SABMiller has gone hostile, saying it intends to make a second offer, direct to Foster's shareholders.

Foster's has been the subject of takeover rumours since last year.

"The board of Foster's, together with its advisers, has carefully considered the proposed offer and intends to unanimously recommend shareholders reject the offer," Foster's said.

"The board of Foster's reiterates its belief that an offer price of A$4.90 per share significantly undervalues the company in the context of a change of control."

SAB, which owns brands such as Grolsch and Peroni, had said the bid was attractive and should be put to shareholders.

It must gain the acceptance of at least 90% of Foster's shareholders for the takeover attempt to succeed.

There have been talks of a takeover of Foster's since it announced plans to break itself into two parts last year.

The brewer spun-off its troubled wine business, which had been seen as deterring potential suitors.

Any purchase of Foster's by SAB will not include the Foster's lager brand in the UK and Europe, where it is owned by Heineken.

View the original article here

Read More