Foster's Rejects SABMiller Proposal
The Board of Foster's reiterates its belief that an offer price of $4.90 per share significantly undervalues the company in the context of a change of control. In addition, the high level of conditionality further detracts from the proposed offer.
Aug 18 2011 --- SABMiller plc has announced that it intends to make an unsolicited highly conditional takeover offer for all the shares in Foster's Group Limited at a price of $4.90 per share in cash, reduced by the amount of any dividend or distribution paid or declared by Foster's after 17 August 2011.
The Board of Foster's, together with its advisers, has carefully considered the proposed offer and intends to unanimously recommend shareholders reject the offer. The Board of Foster's reiterates its belief that an offer price of $4.90 per share significantly undervalues the company in the context of a change of control. In addition, the high level of conditionality further detracts from the proposed offer.
The Board of Foster's will set out its detailed views in relation to the proposed offer from SABMiller in the target's statement which will be mailed to all shareholders following the receipt of the bidder's statement. Foster's shareholders are advised to take no action and ignore all documents and communications from SABMiller in relation to its proposed offer.
