Report of buyout talks sends SABMiller up 10%
Oct 7th 2011, 08:20
SABMiller "unlikely" to be bought by AB InBev because of the potential cost of exiting joint ventures, and the price of a takeover according to London analyst.
SABMiller ’s share price jumped as much as 10% yesterday to a record R286,98 after Brazilian news website IG reported that the brewer was in talks to be bought by larger rival Anheuser-Busch InBev.
SABMiller later retreated to close 3,76% higher at R270,17.
Guilherme Barros, a columnist at the website, said a deal could be worth about $80bn.
Nigel Fairbrass, a spokesman for London-based SABMiller, and Marianne Amssoms, a spokeswoman for AB InBev, declined to comment.
Analysts downplayed the speculation, saying such a deal would be contrary to recent guidance by AB InBev management. The Budweiser brewer is "the right size" and is focused on organic growth, CEO Carlos Brito said in an interview with Dutch newspaper De Tijd in July. AB InBev, formed when InBev bought Anheuser-Busch in 2008 for $52bn, had net debt of $40,1bn as of June 30. "Raising $80bn in such volatile markets seems a tough ask and such a strategic deal appears to contradict senior AB InBev management commentary," analyst Andy Smith of MF Global in London said yesterday.
SABMiller, the maker of Grolsch and Peroni, agreed to buy Australia’s Foster’s Group for about A$9,9bn on September 21.
SABMiller is "unlikely" to be bought by AB InBev because of the potential costs of exiting joint ventures and the price of a takeover, Trevor Stirling, an analyst at Sanford C Bernstein in London, said in a March report.
Were AB InBev to acquire SABMiller, it would probably have to divest SABMiller’s stake in MillerCoors, a joint venture with Molson Coors Brewing Company, and "take a haircut on fair value on the disposal", Mr Stirling wrote. SABMiller’s 49% stake in China Resources Snow Breweries may present a similar issue, he said.
World food price index up
05/10/2012 - 07:56
World food prices rose slightly last month‚ following some stability in the preceding two months‚ according to the latest United Nations Food and Agriculture Organisation (FAO) report.
Tiger Brands buys 63% Dangote Flour
05/10/2012 - 07:46
Nigerian billionaire Aliko Dangote on Thursday sold 63 percent of Dangote Flour to South African consumer goods firm Tiger Brands in a deal worth $188 million, brokers said.
PPI slows to 5.1% in August
28/09/2012 - 11:59
Johannesburg - SA's producer inflation, which represents domestic output, was slower at 5.1% year-on-year in August compared with 5.4% in July, Statistics SA data showed on Thursday.
Heineken gulps Tiger after takeover nod
28/09/2012 - 11:56
Singapore - Shareholders in the parent company of the Singapore-based brewer that makes Tiger Beer approved its takeover by Heineken Friday, increasing the Dutch giant's footprint in the growing Asian market.
Tiger Brands acquires a 63.35% shareholding interest in Dangote Flour Mills in Nigeria
25/09/2012 - 08:54
Tiger Brands Limited (“Tiger Brands”) and Dangote Industries Limited (“Dangote”) are pleased to announce they have executed a share sale and purchase agreement which will result in Tiger Brands acquiring a 63.35% shareholding in Dangote Flour Mills Plc (“Dangote Flour Mills”) for approximately R1.5 billion from Dangote. The transaction is expected to be effected during the first week of October 2012.