Colombia: SABMiller picks BNP to carry out public offer on Bavaria

London-based SABMiller PLC said May 24 it chose French investment bank BNP Paribas SA to carry out an obligatory public tender offer to purchase the stake it doesn't own in Colombia's biggest brewer Grupo Empresarial Bavaria SA, Dow Jones’ MarketWatch announced May 25.

In December, SABMiller paid $1.2 billion to buy a 25.2% stake in Bavaria in a public tender offer. With that operation, SABMiller raised its stake in Bavaria to 97%. The company then further raised its stake, buying shares on the open market and owns all but a little more than 2.3% of the beer maker.

Under Colombian law, if one disappointed minority shareholder requests an additional public tender offer, the company is forced to undertake the operation. In July, SABMiller had agreed to pay $7.8 billion to Bavaria's previous owner, Julio Mario Santo Domingo for his 71.8% stake in the company.

Juan Claudio Morales, a former manager of the bankers' association, Asobancaria, and also a minority shareholder in Bavaria claimed in December, SABMiller had paid Santo Domingo more than the minority shareholders.

Colombian traders are speculating the new public tender offer might take place on late August.