Italy: SABMiller plc announced on February 23 that it has acquired a further 39.8% of Birra Peroni that it does not already own, for a cash consideration of €162.5 million (US$212.6 million). The agreement follows SABMiller’s acquisition of a 60% stake in Birra Peroni completed in June 2003 for €246.0 million.

Under the terms of the original agreement announced in May 2003, SABMiller and the shareholders of Birra Peroni entered into put and call options that, when exercised, would result in SABMiller’s ownership increasing to 99.8% from December 2006. The price payable under these put and call options was based on an equity value of €410 million (for 100% of Birra Peroni) plus interest and earn-out arrangements which were dependent on the future performance of the business.

SABMiller and the minority shareholders in Birra Peroni have today agreed to accelerate the share transfer process which has increased SABMiller’s shareholding to 99.8% at the price prescribed within the original agreement, and simultaneously the parties have agreed to terminate the earn-out arrangements. The acquisition was not subject to any conditions and has been financed from existing resources.

SABMiller plc is one of the world’s largest brewers, with 2003/04 lager sales volumes in excess of 137 million hectolitres. It has a brewing presence in over 40 countries across four continents and a portfolio of strong brands and leading market shares in many of the countries in which it has brewing operations. Outside the USA, SABMiller plc is one of the largest bottlers of Coca-Cola products in the world.

In the year ended 31 March 2004, the group generated US$1,391million pre-tax profit from a turnover of US$12,645 million. SABMiller plc is listed on the London and Johannesburg stock exchanges.

Birra Peroni S.p.A. is the second largest brewer in Italy with a 25% market share. Its portfolio of brands includes the number one beer brand in Italy, Peroni; and Nastro Azzurro, the number three brand in the premium segment. In the year to 31 March 2004, Birra Peroni grew its volumes in line with the overall market at approximately 6%. In November 2003, Miller Genuine Draft was introduced into the portfolio following the termination of the Anheuser-Busch Budweiser contract.

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