Nomura sees AB Inbev raising bid towards mid-GBP 40s

The Leuven, Belgium-based outfit proposed a blended average offer price of £40.23, valuing the target company’s equity at $99.4bn (£64.97bn).

“While this represents an attractive offer, we would see potential for a further, final sweetened offer around the mid GBP 40s per share,” analysts at Nomura said in a research note sent to clients.

Assuming the company offloaded assets in China and the US and that certain existing shareholders, such as Altria and the Santo Domingo family, took equity, the combined company’s ratio of pro-forma net debt to operating profits would hit 4.6, the broker added.

“With no white knight or poison pill, and with Altria putting its support behind the current bid or higher, we see the SABMiller Board pushing for as high a price as possible rather than trying to de-rail the transaction.”

In an Analyst call, Inbev indicated it has already held extensive discussions with the Santo Domingo family, Nomura pointed out.

Part of the reason for today's revised bid was to keep the 'pressure up' on Sab Miller's management, the same broker added.

For their part, analysts at SocGen pointed out how with Altria having issued a statement in support of a bid at “£42.15 or higher”, SAB Miller was now under pressure from Altria and the Santo Domingo family (=Bevco) to engage with ABI in order to come up with an acceptable offer price.