SABMiller’s Biggest Shareholder Backs Revised Bid

Tobacco company Altria has urged the Board of brewer SABMiller to accept the latest takeover proposal from Anheuser-Busch InBev (AB InBev).

AB InBev on Wednesday upped its cash offer for SABMiller to GBP 42.15 per ordinary share, with a partial share alternative.

Altria, SABMiller's biggest shareholder with a 27 per cent stake, subsequently issued a strongly worded statement in support of the revised bid.

"Altria believes that a combination of these two companies would create significant value for all SABMiller shareholders,” the company said.

"Altria urges SABMiller’s board to engage promptly and constructively with AB InBev to agree on the terms of a recommended offer."

However, SABMiller said the all-cash offer within the new proposal was “only GBP 0.15 higher than the 'GBP 42 Proposal' considered and rejected on 5 October 2015”.

SABMiller Chairman Jan du Plessis said: “SABMiller is the crown jewel of the global brewing industry, uniquely positioned to continue to generate decades of standalone future volume and value growth for all SABMiller shareholders from highly attractive markets.”

“AB InBev needs SABMiller, but has made opportunistic and highly conditional proposals, elements of which have been deliberately designed to be unattractive to many of our shareholders. AB InBev is very substantially undervaluing SABMiller,” he said.

The brewer said its board will meet formally to consider the GBP 42.15 proposal and make a further announcement in due course.