AB InBev sweetens proposal to SABMiller to £43.50 a share

Belgium-based Anheuser-Busch InBev has sweetened its proposal to SABMiller to £43.50 per share after its London-listed rival rebuffed a third approach at £42.15 last week.

AB InBev said the improved proposal comprises a cash offer of £43.50 per share, with a partial share alternative available for around 41% of SABMiller shares.

The cash proposal represents a premium of over 48% to SABMiller’s closing price of £29.34 on 14 September, which was the last business day prior to renewed speculation of an approach from AB InBev.

AB InBev said the improved proposal was pre-conditional on both Altria Group and BevCo – SAB’s two biggest investors – undertaking to elect for the partial share alternative in respect of all of their SABMiller shares.

The Belgian group said it expects most SABMiller shareholders, other than Altria Group and BevCo, would wish to elect for the cash offer.

AB InBev added that it will not be seeking the SABMiller board’s recommendation with respect to the partial share alternative.

On Friday, SABMiller put out a statement announcing that it has increased its annual cost savings target to at least $1.05m by 31 March 2020 from $500m by 31 March 2018, as it looked to convince shareholders it would be better off staying as a standalone company.

At 1440 BST, SABMiller shares were up 1.5% at 3,723.50p.