SABMiller PLC, one of the world's largest brewers, launched a hostile $10 billion bid Wednesday for Australian rival Foster's Group Ltd. after Foster's board rejected a takeover offer.
The maker of Peroni, Grolsch and Miller Lite said that it is taking its cash offer of $5.13 per share, minus any dividend Foster's chooses to pay out, straight to Foster's shareholders and that the offer would be funded by existing resources and new debt.
The London-headquartered company said Foster's had so far declined to consider a similar offer made in June. The Australian brewer said the bid significantly undervalued the company.
SABMiller had said in June that Foster's was attractive because it was Australia's leading brewer with seven of the top 10 beer brands. It also said buying the company was consistent with its strategy to expand globally. It considers Australia an attractive market because of its population growth and economic connections to Asia.
SABMiller, which is listed in London and Johannesburg, said it has a proven track record of integrating brewing companies and improving the performance of those businesses.
SABMiller said it decided to make the offer to the shareholders directly as Foster's board showed "no willingness" to consider the offer.
SABMiller stock finished at 21.39 pounds per share, up nearly 1 percent.