SABMiller Investor Says InBev Bid Preserves Johannesburg Listing

AB InBev’s $100B SABMiller Offer: a Deal Worth Toasting?
  • AB InBev's offer includes secondary listing in Johannesburg
  • PIC feared SABMiller would lose listing in country of origin

Anheuser-Busch InBev NV’s rejected 65.2 billion-pound ($99.9 billion) offer for SABMiller Plc addresses concerns that the brewer would lose its listing on Johannesburg’s stock exchange, according to South Africa’s Public Investment Corp., the target company’s fourth largest shareholder.

“The PIC’s preference has always been for SABMiller to remain listed in the country of its origin, South Africa,” Africa’s largest money-manager said in an e-mailed response to questions on Wednesday. “Listing on the JSE will allow other investors to participate in the future growth of the company.”

AB InBev’s latest offer includes an intention to have a secondary listing on South Africa’s bourse and plans to keep Johannesburg as an African headquarters for the combined group, the Leuven, Belgium-based brewer said in a statement. The company also plans to form a South African board.

The Budweiser maker is willing to pay 40.24 pounds a share in cash and stock for a majority of its nearest competitor, whose brands include Peroni and Grolsch. SABMiller rejected the approach because it substantially undervalues the company. It also refused two earlier offers made privately of 38 pounds a share and 40 pounds a share.

SABMiller shares rose as much as 3.5 percent and traded 1.2 percent higher at 3,663 pence as of 2:37 p.m. in London. That values the company at 59 billion pounds.

The PIC, a state-owned manager of government worker pension funds, owns 3.14 percent of SABMiller. The brewer can trace its roots to 19th century South Africa, where it sold beer to mineworkers on the Johannesburg gold reef.

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