The proposal from AB InBev offered £42.15 per share in cash with a partial share alternative available for around 41% of SABMiller shares (a raised offer on previous bids made in private for £38 per share and then £40 per share).
The Board has rejected the latest £42.15 proposal.
“The Board, excluding the directors nominated by Altria Group Inc., has unanimously rejected the £42.15 proposal as it still very substantially undervalues SABMiller, its unique and unmatched footprint, and its standalone prospects,” said a statement from SABMiller.
In making the bid, AB InBev said it was creating an offer that was ‘highly attractive and an extremely compelling opportunity’ for SABMiller shareholders.
But SABMiller responded with less enthusiasm, pointing out that the board had already (on Monday 5 October) rejected both a proposal of £40 per share, and the concept of a potential £42 per share proposal. AB InBev next offer was just £0.15 more per share than previously considered.
Altria owns around 27% of SABMiller’s ordinary shares. In responding to AB InBev’s offer of £42.15 per share, it said it supported such a proposal of £42.15 or higher and urged SABMiller’s board to ‘engage promptly and constructively’ with AB InBev.