Colombia: SABMiller could complete its takeover of Bavaria in October this year
SABMiller's takeover of Colombian brewer Bavaria could be complete by mid-October, Bavaria, said on September 15, according to Reuters’ reports. In July, SABMiller announced a US$7.8 billion stock-and-cash deal, including debt and interests in subsidiaries, to take over Bavaria and create the world's No. 2 brewer by volume.
"The parties consider that the merger will be completed by mid-October this year, although it could be later given that there are multiple factors not under the control of the parties, including the time the UK Listing Authority could take to approve the document," Bavaria said in a letter to Colombia's stock market regulator, the Securities Superintendency.
SABMiller Plc agreed to buy the company at $19.48 a share, which sparked a 15-percent sell-off by minority shareholders on the day the deal was announced.
But, under Colombian law, the minority shareholders would be allowed to request an independent valuation of Bavaria's fair value, and SABMiller could be ordered to pay at the rate determined. "The price (paid) in the obligatory (Public Share Offering) could be higher or lower than the equivalent in pesos of $19.48," Bavaria said.
No decision has been taken on whether to maintain Bavaria's shares listed in Colombia, the company said, and the peso exchange rate for paying out the $19.48 per share has still to be determined. Bavaria shares closed up 680 pesos at 43,500 pesos ($19) on Thursday.
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