AB InBev Ups Offer For SABMiller; Altria Supports Proposal

(RTTNews) - Belgian brewer Anheuser-Busch InBev (AHBIF.PK, BUD) Wednesday boosted its offer to acquire SABMiller Plc. (SBMRY.PK, SAB.L) to 42.15 pounds per share in cash, with a partial share alternative available for about 41 percent of the SABMiller shares.

AB InBev had previously made two offers - of 38.00 pounds per share in cash and 40.00 pounds per share in cash - that were rejected by the brewer of Peroni and Foster's beer.

The latest cash proposal represents a premium of 44 percent to SABMiller's closing share price of 29.34 pounds on September 14, the last business day prior to renewed speculation of an approach from AB InBev.

AB InBev said the partial share alternative helps achieve financing and supports the cash offer at a higher price than it would otherwise be able to offer. The partial share alternative which comprises up to 326 million shares.

The revised proposal comes a day after reports that SABMIller rejected the 66.4 billion pounds or $100 billion offer, saying it is too low. SABMiller's executives and some shareholders were reported to regard a deal closer to 45 pounds as representing a fair value.

The combination is expected to result in a leading consumer products company. The combined group would have operations in virtually every major beer market, including key emerging regions with strong growth prospects such as Africa, Asia, and Central and South America.

As a combined company, the group sees revenues of $64 billion and Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA of $24 billion.

Meanwhile, Altria Group, Inc. (MO), SABMiller's largest shareholder, said it supports the revised offer from AB InBev for SABMiller. Altria and BevCo Ltd. together hold about 41 percent of SABMiller shares. Subject to finalization of terms, Altria would be prepared to elect the partial share alternative.

Further, Altria urged SABMiller's board to engage with AB InBev to agree on the terms of the offer.

SAB.L climbed 2.8 percent in early trade to 3,723.50 pence. Anheuser Busch was up 2.5 percent in Brussels to 100.50 euros.