Megabrew: AB InBev says SABMiller's latest offer rejection "lacks credibility"

 
James Nickerson
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AB InBev said the cash proposal represents a premium of near 44 per cent (Source: Getty)

The Megabrew saga continues: after brewing giant SABMiller rejected an offer from rival AB InBev worth £42.15 per share yesterday, AB InBev has now hit back, saying the refusal "lacks credibility".

Yesterday afternoon SABMiller said the deal "substantially undervalues [the company], its unique and unmatched footprint, and its standalone prospects".

But today, in tug-of-war-fashion, AB InBev replied that it's "surprised" the board of SABMiller - excluding directors nominated by Altria, who dissented - continues to say the proposal undervalues it.

Altria, the company's the largest shareholder with a 27 per cent stake and three representatives on the board, has publicly stated it supports AB InBev's proposals.

Carlos Brito, chief executive of AB InBev, said:

Notwithstanding our good faith efforts, the board of SABMiller has refused to meaningfully engage with us. Our proposal creates significant value for everybody. How long will it be before shareholders see a value of over £42 in the absence of an offer from AB InBev?

If shareholders agree that we should be in proper discussions, they should voice their views and should not allow the board of SABMiller to frustrate this process and let this opportunity slip away.

AB InBev also said it intends to work "proactively with regulators to resolve any concerns" on hurdles in the US and China.

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