SABMiller says AB InBev 'substantially' undervalues group

[LONDON] Brewer SABMiller on Wednesday said its board will consider a higher takeover offer from rival AB InBev even though it "substantially" undervalued the group.

The world's biggest brewer, Anheuser-Busch InBev, announced on Wednesday an improved 68-billion-pound (S$147-billion) takeover offer for British rival SABMiller.

The Belgian-Brazilian giant, which brews Budweiser, Corona and Stella Artois, said it was disappointed that SABMiller had rejected its two previous lower-priced offers "without any meaningful engagement".

Responding in a company statement, SABMiller chairman Jan du Plessis said: "AB InBev is very substantially undervaluing SABMiller." The British group said that "it should be noted that the all-cash offer within the new proposal announced today is only 0.15 pounds higher."

It added: "The board will, of course, meet formally to consider the 42.15 pounds (per share) proposal as soon as practicable and a further announcement will be made thereafter.

AFP