AB InBev Raises Offer for SABMiller to $103bn Amid Fall in Value of British Pound

26 Jul 2016 --- Anheuser-Busch InBev has increased its offer for SABMiller from £77bn ($101bn) to £79bn ($103bn) amid a fall in the value of the British pound since the UK referendum vote which has made the offer less attractive to SABMiller shareholders.

In an unusual move, SABMiller shareholders will now receive £45 ($59) a share, compared to £44 ($58) a share announced in November last year.

The value of the pound fell as much as 12 percent compared to the dollar following the referendum and is now down around 10 percent to $1.32.

AB InBev, the brewer of Stella Artois, said the new offer represented a 53 percent premium to SABMiller's closing share price of £29.34 ($38) on 14 September 2015.

However, SABMiller said no agreement had been reached on the increased offer.

SABMiller said: "The board of SABMiller confirms that on July 22 2016 its chairman had a conversation with the chairman of AB InBev about AB InBev's offer for SABMiller in light of recent exchange rate volatility and market movements. There was no discussion or agreement about the terms of today's revised offer.”

"The board will continue to consult with shareholders and will meet in due course formally to review, having regard to all facts and circumstances, the revised offer and a further announcement will be made thereafter."

AB InBev said the increased offer was its final offer and that it “will not further increase the Cash Consideration or the cash element”.

The Belgian brewer has also altered the makeup of cash and shares offered to SABMiller's major shareholders, raising the cash offer.

The deal, dubbed "megabrew", has been given the green-light from regulators in the US, Europe and South Africa, though it has yet to receive regulatory clearance in China.

AB InBev is the world’s biggest brewer and agreed to purchase the second biggest brewer SABMiller last year, marking one of the biggest corporate deals in recent history.