Foster’s rejects takeover approach

The Melbourne-based company told SAB that its conditional proposal of 4.90 Australian dollars a share, representing an 8 per cent premium on the company’s share price yesterday, significantly undervalued the business.

SABMiller is the world’s second-biggest brewer by volume and has global brands including Pilsner Urquell, Peroni Nastro Azzurro and Miller Genuine Draft.

It said its proposal was driven by Australia’s profitable beer market, in which Foster’s is the leading brewer with seven of the top 10 beer brands, as well as a national distribution network and scale production.

Chief executive Graham Mackay said: “We continue to believe that the proposal price is attractive and offers good value to Foster’s shareholders.”

He added the company would continue to seek talks with the Foster’s board and deliver an agreed proposal for consideration by the company’s shareholders.

Foster’s has become the subject of takeover speculation after it sold off its under-performing wine business into a separately listed company in May.

Analysts said that other global brewers were now likely to be mulling their options over Foster’s following the SABMiller bid rejection.

Foster’s leading brands include VB, Carlton Draught and Corona, while it is also the largest cider producer in Australia.