The Australian brewer?s Group, Foster?s Group Ltd has confirmed news that the company has rejected the offer from beer maker SABMiller PLC. It is learnt that the bid is undervalued for the beer company.
“The board of Foster’s believes that the proposal significantly undervalues the company in the context of a change of control and, as such, it does not intend to take any further action in relation to it,” Melbourne-based Foster’s said in a statement.
The London based SABMiller, the world?s second biggest brewer has made an unsolicited, conditional and nonbinding proposal of AU$4.90 a share in cash for Foster?s- an eight percent premium on Foster?s last trading price of AU$4.53.
SABMiller said Foster’s was attractive because it was Australia’s leading brewer with seven of the top 10 beer brands, and buying the company was consistent with its strategy to spread further globally. “We continue to believe that the proposal price is attractive and offers good value to Foster’s shareholders,” SABMiller chief executive Graham Mackay said in a statement.
Right after this announcement, Foster’s shares jumped on the Australian market by13 percent to AU$5.12, its highest price since February 2007.
Source: AP; Economic Times; Forbes