Foster's Group Rejects SABMiller Proposal

On June 20, 2011, Foster's Group Limited (Foster's) received and promptly rejected an unsolicited, non-binding and conditional proposal from SABMiller plc to acquire all of Foster's shares for $4.90 per fully paid share in cash.
 

The Board of Foster's believes that the proposal significantly undervalues the company in the context of a change of control and, as such, it does not intend to take any further action in relation to it.
 

SABMiller, on the other hand, believes the proposal to acquire Foster's is in line with SABMiller's strategy to create an attractive global spread of businesses, with a focus on developing strong and successful brand.

"We continue to believe that the proposal price is attractive and offers good value to Foster's shareholders. SABMiller can conclude a transaction quickly and will continue to seek engagement with the Board of Foster's to put an agreed proposal to Foster's shareholders," said SABMiller Chief Executive Officer Graham Mackay.
 

As previously announced by Coca-Cola Amatil Limited to the Australian Securities Exchange, SABMiller has separately reached agreement with Coca-Cola Amatil Limited to acquire its share of the Pacific Beverages Pty Limited joint venture should SABMiller acquire a controlling interest in Foster's.

"SABMiller has a proven track record of acquiring and integrating brewing companies in a way which benefits shareholders, employees, business partners and the broader community,” continued Mackay. "We aim to strengthen the Foster's brand portfolio and work with the local team to bring our innovation, global scale and expertise to the business.