The board of SABMiller has asked for a further extension to the deadline for talks over ABInBev’s proposed £68bn takeover of the brewer.
In an update to the City from both companies this morning they said AB InBev had now completed its due diligence review of SABMiller and reconfirmed the financial and other terms of the offer.
SAB’s board said that in order to continue discussions with respect to other aspects of the transaction it requested the Panel on Takeovers and Mergers to extend the deadline to 5pm on 11 November.
The two sides reached agreement last month on a final offer from AB InBev, which would see SABMiller shareholders receive £44 per share in cash, with a partial share alternative available for approximately 41% of the shares.
The deal will create the world’s biggest brewer, producing one third of all the beer consumed.
A statement said: “On 28 October 2015, SABMiller and AB InBev announced the extension of the relevant ‘put up or shut up’ (PUSU) deadline to 4 November 2015 in order to allow SABMiller and AB InBev to continue their discussions with respect to the possible recommended offer to be made by AB InBev for the entire issued and to be issued share capital of SABMiller on the key terms set out in the announcement on 13 October 2015. It was announced at that time that AB InBev had completed its confirmatory due diligence review of SABMiller and reconfirmed the financial and other terms of the possible offer. AB InBev also confirmed that facilities which will allow AB InBev to provide certain funds in support of the cash components of the Possible Offer had been negotiated and could be executed at short notice.
“Since that announcement, SABMiller and AB InBev have made good progress in agreeing the terms of the possible offer which will be set out in detail in any announcement of a firm intention to make an offer. AB InBev has also confirmed that the above mentioned facilities have been entered into. In order to allow SABMiller and AB InBev to finalise their discussions and satisfy the pre-conditions to the announcement of a formal transaction as outlined below, the Board of SABMiller has requested that the Panel on Takeovers and Mergers further extends the relevant PUSU deadline until 5.00pm on 11 November 2015.”
