Not entirely omniscient
30 May 2016 22:12 (South Africa)
Business

Headline: SABMiller finally gets foothold in Asia-Pacific with Foster's purchase

  • Sipho Hlongwane
    sipho hlongwane BW
    Sipho Hlongwane

    Sipho Hlongwane is a writer and columnist for Daily Maverick. His other work interests also include motoring, music and technology, for which he has some awards. In a previous life, he drove forklift trucks, hosted radio shows, waited tables, and was once bitten by a large monitor lizard on his ankle. It hurt a lot. Arsenal Football Club is his only permanent obsession.

    He appears in these pages as a political correspondent.

  • Business
fosters

After some last-minute drama and posturing from the Foster’s bigwigs, SABMiller has finally got its hands on the Australian brewery, and with it a big footprint not only on the continent, but the Pacific as well. It’ll also serve as a nice addition to SABMiller’s expanding Asia presence. By SIPHO HLONGWANE.

On 21 September 2011, SABMiller finally convinced shareholders of the Foster’s Group brewing company to part with their shares at A$5,40 (R43,57) a pop.

In total, SABMiller will shell out R79,9 billion once the deal gains a 50% shareholder majority by number, translating into a 75% control of stock. The deal gives SABMiller at least half of Australia’s beer market, according to Bloomberg.

“The deal makes strategic and financial sense for SAB,” said Simon Hales, an analyst at Barclays Capital in London said to Bloomberg. “It’ll be taken well even though the headline offer price is slightly more than we would have hoped.”

Foster’s and SABMiller have had months of bickering over what the Australian company was worth exactly. SABMiller first tried to negotiate with the Foster’s management, who did whatever the Australian equivalent of laughing one out of the building is, and told the bidders to get lost. SABMiller then went to Defcon 3, and took the matter to the shareholders with a A$4,90 per share offer.

That too was rebuffed, before a deal was struck which gave shareholders A$5,10 per share, plus 30 cents a share as part of a previously announced capital return and a 13.25-cent final dividend. The previous offer made no mention of dividends.DM



Read more:

  • SABMiller to buy Foster’s after raising bid in Bloomberg;
  • Foster’s agrees to takeover bid from SABMiller in The Australian.

Photo: REUTERS






  • Sipho Hlongwane
    sipho hlongwane BW
    Sipho Hlongwane

    Sipho Hlongwane is a writer and columnist for Daily Maverick. His other work interests also include motoring, music and technology, for which he has some awards. In a previous life, he drove forklift trucks, hosted radio shows, waited tables, and was once bitten by a large monitor lizard on his ankle. It hurt a lot. Arsenal Football Club is his only permanent obsession.

    He appears in these pages as a political correspondent.

  • Business

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