SABMiller Wins Foster’s
As expected, SABMiller’s sweetened bid for Foster’s has been recommended by the Australian brewer’s board. The agreed proposal represents an acquisition enterprise value of A$11.5 billion, which is a 2.8% increase on the enterprise value of A$11.2 billion implied by SABMiller’s initial proposal announced on June 21st 2011.
The acquisition is in line with SABMiller’s strategic priorities and will provide it with a leading position in the stable and profitable Australian beer industry along with the opportunity to apply SABMiller’s capabilities and scale to improve Foster’s financial and operating performance.
The acquisition is expected to be EPS enhancing for SABMiller in the first full year of ownership and economic returns are expected to exceed the project WACC by year 5.
”Foster’s will become an important part of our business, and through the application of our commercial capabilities and global scale, we expect to build on the initiatives that Foster’s management has put in place, further enhancing Foster’s performance and creating value for our shareholders,” comments on the agreement, Graham Mackay, chief executive of SABMiller.
