AB InBev Increases Offer For SABMiller To GBP 43.50/shr

(RTTNews) - Responding to recent speculation, Belgian brewer Anheuser-Busch InBev NV, known as AB InBev (BUD, AHBIF.PK) confirmed that it has made an improved proposal to the Board of British brewer SABMiller Plc. (SAB.L, SABMRY.PK) to combine the two companies. AB InBev's improved proposal comprises a cash offer of 43.50 pounds per share, with a partial share alternative available for approximately 41% of the SABMiller shares.

The cash proposal represents a premium of over 48% to SABMiller's closing share price of 29.34 pounds on 14th September 2015, being the last business day prior to renewed speculation of an approach from AB InBev.

Under the improved proposal, SABMiller shareholders who elect for the partial share alternative will receive 0.483969 Restricted Shares and 3.56 pounds in cash for each SABMiller share.

Based on the closing price of AB InBev's ordinary shares on 9th October 2015 of EUR 98.30, the partial share alternative, including the GBP 3.56 in cash, would value each SABMiller share at GBP 38.88 per share, representing a premium of approximately 33% to the closing SABMiller share price of GBP 29.34 as of 14th September 2015.

This improved proposal is pre-conditional on both Altria Group, Inc. and BevCo Ltd. undertaking to elect for the partial share alternative in respect of all of their SABMiller shares.

AB InBev anticipates that most SABMiller shareholders, other than Altria Group, Inc. and BevCo Ltd., would wish to elect for the cash offer.

AB InBev stated that it will not be seeking the SABMiller Board's recommendation with respect to the partial share alternative.

On Wednesday, SABMiller had said its board rejected the revised offer price of 42.15 pounds per share from AB InBev, stating it still very substantially undervalues SABMiller, its unique and unmatched footprint, and its standalone prospects.

AB InBev then boosted its offer to acquire SABMiller to 42.15 pounds per share in cash, with a partial share alternative available for about 41 percent of the SABMiller shares.

AB InBev had previously made two offers - of 38.00 pounds per share in cash and 40.00 pounds per share in cash - that were rejected by the brewer of Peroni and Foster's beer.