SABMiller Can Still Sell A Self-Improvement Story
Stephen Simpson, CFA
Stephen Simpson, CFA
M&A Could Add Even More Pop To SABMiller
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, Sep. 20, 4:28 PM
- Shareholders holding sizable positions in SABMiller (OTCPK:SBMRY) are in the spotlight as the company's meeting on September 26 approaches. The vote on the Anheuser-Busch InBev (NYSE:BUD) merger will be the main event of the SABMiller gathering.
- Large institutional shareholders such as BlackRock and State Street Global Advisers are seen approving the deal because they also own interests in BUD and Molson Coors, but the hedge fund vote is harder to forecast. Some hedgies may gamble and skip out on voting by declining to convert their options and derivatives to save on the exercise tax.
- Another reason that the merger vote may be closer than anticipated is that both Altria (NYSE:MO) and the Santo Domingo family are excluded from having a say.
Thu, Sep. 15, 3:33 AM
- Polish billionaire Sebastian Kulczyk could team up with private equity funds in a potential joint bid for SABMiller's (OTCPK:SBMRY) central and eastern European beer brands, according to the Puls Biznesu daily.
- The brewing businesses, based in the Czech Republic, Poland, Hungary, Romania and Slovakia, are up for sale as part of AB InBev's takeover of SABMiller.
- Previously: China brewer eyes SABMiller assets (Sep. 14 2016)
Wed, Sep. 14, 3:40 AM
- China Resources Beer Holdings (OTCPK:CRHKY) is considering a bid for SABMiller's (OTCPK:SBMRY) central and eastern European assets, valued at about $6B, sources told Bloomberg.
- A sale process for the assets, which include the brewer of Czech lager Pilsner Urquell, is expected to start next month after SABMiller's deal with AB InBev closes.
Fri, Aug. 26, 5:34 AM
- Around 3% of the combined workforce of Anheuser-Busch InBev (NYSE:BUD) and SABMiller (OTCPK:SBMRY) could be laid off in the three years following the completion of their merger. That 3% though, excludes sales and front-office supply staff, as AB InBev says regulatory restrictions prevent it from moving forward with integration plans at the moment.
- Combined, the two companies currently employ about 220K.
Tue, Aug. 23, 7:08 AM
- A court in the U.K. rules that Altria (NYSE:MO) and Bevco can be treated as a separate class from other SABMiller (OTCPK:SBMRY) shareholders in connection with a vote on the company's merger with Anheuser-Busch InBev (NYSE:BUD).
- Both classes will need to approve the terms of the merger by a 75% rate.
Thu, Aug. 11, 10:47 AM
- MillerCoors (TAP, OTCPK:SBMRY) added yet another craft brewer to its Tenth and Blake division with the purchase of Revolver Brewing.
- Terms for the acquisition of the Texas craft beer specialist weren't disclosed.
- MillerCoors has been this summer adding new craft labels with Anheuser-Busch InBev busy working on the Megabrew deal.
Mon, Aug. 8, 11:01 AM
- While Megabrew news has dominated the beer industry conversation over the last month, MillerCoors (OTCPK:SBMRY, TAP) has quietly added two new craft brewers to its portfolio.
- The joint venture company added Hop Valley Brewing this month and picked up Terrapin Beer last month.
- Both properties will be piled into MillerCoors' Tenth and Blake family of craft brands which already includes Blue Moon, Jacob Leinekugel Brewing, and Saint Archer Brewing.
Thu, Aug. 4, 4:27 AM
- After its MegaBrew deal is completed, AB Inbev (NYSE:BUD) plans to adopt a leadership team that will be composed of zone presidents and functional heads reporting to CEO Carlos Brito.
- The brewer will continue to be based in Leuven, Belgium, while managing its day-to-day operations from New York, and existing SABMiller (OTCPK:SBMRY) hubs in Miami, Hong Kong and Beijing will be phased out within a few months after completion of the combination.
Mon, Aug. 1, 2:44 PM| Mon, Aug. 1, 2:44 PM | 7 Comments
Fri, Jul. 29, 11:30 AM
- The board at SABMiller (OTCPK:SBMRY) officially throws its support behind the acquisition of the company by Anheuser-Busch InBev (BUD +2.4%). The £79B ($104.94B) offer was at the "lower end" of the company's acceptable range.
- A-B landed its last required regulatory approval earlier today in China after raising its offer for SABMiller at the beginning of the week.
- The deal brings together a large number of beer brands into the same corporate house even after key divestitures across regions. A partial list of the Megabrew assets includes Bud Light, Budweiser, Michelob, Rolling Rock, Busch, Shock Top, Natural, Goose Island, Blue Point, Four Peaks, Grolsch, Pilsner Urquell, Foster's Lager, and Castle Lager.
- Shares of MolsonCoors (NYSE:TAP) are up 3.32% with the company now set to control MillerCoors in the U.S. by itself. SABMiller stakeholder Altria (MO +1%) also perked up after the announcement.
Fri, Jul. 29, 7:36 AM| Fri, Jul. 29, 7:36 AM | 2 Comments
Thu, Jul. 28, 7:09 AM
- A memo from SABMiller (OTCPK:SBMRY) CEO Alan Clarke to employees sent yesterday asked them to have no contact with Anheuser-Busch InBev (NYSE:BUD). The MegaBrew too was unexpected.
- "It suggests that they think that the risk is real that shareholders won’t approve this," says Morningstar analyst Philip Gorham on the development.
- The missive from Clarke also instructed employees to stop talking to reps from Molson Coors (NYSE:TAP) and Asahi Group Holdings (OTCPK:ASBRF) which are both set to buy beer assets from SABMiller.
- SAB shareholder Aberdeen Asset Management maintains that even the new upped bid from Anheuser-Busch InBev is too low.
Wed, Jul. 27, 12:51 PM
- SABMiller (OTCPK:SBMRY) has halted work on the integration process for the company's planned merger with Anheuser-Busch InBev, inside sources tip Bloomberg.
- The request from SABMiller management follows an upped offer from Anheuser-Busch InBev in reaction to the pound free-fall, although some activist investors think the deal price still isn't high enough.
- The SABMiller board hasn't commented on the new bid yet.
- Anheuser-Busch InBev is down 5.4%, while Molson Coors TAP is off 5.1% with the status of MillerCoors now in question. SABMiller closed lower in London trading before the Bloomberg report broke.
- Previously: Big jolt for MegaBrew deal (developing) (July 27)
Wed, Jul. 27, 11:50 AM| Wed, Jul. 27, 11:50 AM | 6 Comments
Tue, Jul. 26, 11:34 AM
- Bloomberg Gadfly outlines the case on why the board at SABMiller (OTCPK:SBMRY) should reject the upped offer from Anheuser-Busch InBev (BUD +1%).
- Though the new deal valued at $104B offers larger shareholders such as Altria (MO -0.8%), Bevco, and hedge funds improved partial share alternative benefits, the premium is still on the thin side for smaller investors due to the pound devaluation.
- Also, the risks of combining two companies with dramatically opposing cultures can't be ignored, warns Bloomberg.
- SABMiller's board is expected to review the offer after regulators in China weigh in on the merger.
- Previously: AB InBev sweetens offer for SABMiller (July 26)
Tue, Jul. 26, 3:36 AM
- Responding to investor concerns about a slump in the pound, AB InBev (NYSE:BUD) has raised its bid for SABMiller (OTCPK:SBMRY) to £45 a share, from £44 previously, valuing the British brewer at £79B ($103B).
- It also increased the amount of cash for shareholders who choose a cash-and-stock alternative.
- The deal has already been approved by competition authorities in the U.S. and South Africa, leaving Chinese approval the last big antitrust hurdle to the combination.