SAB MIller/Foster's

SABMiller moves in on Foster's

SABMiller offers $11.9 billion to take over Foster's, but the Aussie brewer's board holds out for more.
<div style="text-align:right; font-size:7pt; color:rgb(119, 119, 119);">
Photo: AFP</div>
<div style="text-align:right; font-size:7pt; color:rgb(119, 119, 119);"> Photo: AFP</div>

The board of Foster’s Group yesterday rejected an A$11.2 billion $11.9 billion takeover offer tabled by SABMiller on Monday.

The offer translates to a price of A$4.90 a share and represents an Ebitda multiple of 12.5 times forecast 2011 earnings. Specialists said that the multiple was the same as Japanese giant Kirin Holdings paid in 2009 to buy Australia’s second-largest brewer Lion Nathan, which should help investors to view the deal favourably. The price is a premium of 14.5% to Foster’s trading price of A$4.28 on June 2, the day before the most recent round of speculation of a bid for the company, and a premium of 18.4%...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222