Canada: Sapporo Breweries extended CA$400 million takeover bid for Sleeman Breweries Ltd. to October 17
Sapporo Breweries unit of Japan's Sapporo Holdings Ltd. said October 02 it would extend its CA$400 million takeover bid for Canadian beer maker Sleeman Breweries Ltd. to Oct. 17, Reuters communicated October 02.
The cash offer of CA$17.50 a share was set to expire at 5 p.m. October 02. Sapporo said one of the conditions of its bid was to obtain regulatory and government approval before it concluded the deal and it had yet to obtain the green light from Industry Canada.
"Sapporo and Sleeman are continuing to work with the Investment Review Division of Industry Canada (IRD) in connection with its review of the proposed acquisition of Sleeman by Sapporo," the Japanese firm said.
"Sapporo has submitted proposed undertakings to the IRD, which are currently being considered by the IRD."
The cash offer represented a lofty 50 percent premium over the price of Sleeman shares on May 11, a day before the Guelph, Ontario-based brewer announced it was looking for a buyer.
Sleeman is already brewing Sapporo beer in Canada under a licensing agreement.
Sleeman, Canada's third biggest brewer with about 7 percent of the country's beer market, has been suffering from fierce price competition in the past year and hired an investment firm in May to consider a possible sale.
The CA$400 million offer includes assumed debt and there is an CA$8.5 million break fee in the deal. The agreement required approval by two-thirds of Sleeman's shareholders.
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