Business Maverick

Business Maverick

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

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

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

Gallery

Please peer review 3 community comments before your comment can be posted

We would like our readers to start paying for Daily Maverick...

…but we are not going to force you to. Over 10 million users come to us each month for the news. We have not put it behind a paywall because the truth should not be a luxury.

Instead we ask our readers who can afford to contribute, even a small amount each month, to do so.

If you appreciate it and want to see us keep going then please consider contributing whatever you can.

Support Daily Maverick→
Payment options

Every seed of hope will one day sprout.

South African citizens throughout the country are standing up for our human rights. Stay informed, connected and inspired by our weekly FREE Maverick Citizen newsletter.