Investors set to quiz SAB Miller on deal
SABMiller faces retaliation from shareholders over the UK brewing giant’s proposed US$9.98bn takeover bid for Australian peer Foster’s Group.
SAB put in a $4.90-a-share (£3) offer for the Australian brewer last week but was rebuffed after Fosters said in a statement released on the Australian stock exchange that the proposal “significantly undervalues” the company.
Several big investors have concerns about the bid, saying that SAB’s chief executive, Graham Mackay had not properly justified why it is keen to buy Foster’s, according to weekend reports which did not cite names.
At a presentation last week, SAB was confident in its bid for Foster’s, with Mackay arguing that the company “has been under-performing” and “that this creates opportunities” to create value.
But analysts are wary of what the rationale behind the bid is, with some saying that Foster’s is neither a strong global brand, nor does it have a long brewing history that can be developed into one.
SAB, which already have the rights to the Foster’s brand in India and the US, will not be able to win rights in other countries where the licence has already been signed off. In the UK, for example, the rights are owned by Heineken.
SAB, the owner of brands such as Peroni and Grolsch, has indicated it wishes to pursue an acquisition. The company declined to comment.