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SABMiller made a conditional, off-market $9.97-billion cash offer to Foster's shareholders, MarketWatch reported. The bid is the same amount Foster's board of directors rejected in June.
SABMiller is the world's second-biggest brewer behind Anheuser-Busch InBev NV. Ninety percent of Foster's shareholders must approve the bid, according to SABMiller. If the hostile takeover bid is approved, the deal would be funded via "existing resources and debt."
"We believe that the proposal price is attractive and offers good value to Foster's shareholders and provides an opportunity for them to realize their investment for a cash price on completion," Graham Mackay, SABMiller's CEO, said during a video interview that appeared on the company's website. "In addition, our proposal can be executed quickly."
Mackay did note the takeover process is still in its early stages. "SABMiller is seeking engagement with the Foster's board via constructive discussions to see if together we can develop this proposal," he said.