Foster's gets shareholders' nod for SABMiller sale

MELBOURNE/NEW DELHI: Foster's Group moved a step closer to sealing a deal for its takeover by SABMiller plc after the Australian beer major's shareholders approved the offer by the global brewer.

Shareholders of Foster's approved the scheme of arrangement with respect to SABMiller's takeover proposal by an overwhelming majority, according to a statement issued by Foster's.

Foster's said 99.1 per cent of votes were cast in favour of the resolution and 87.2 per cent of shareholders present at the meeting (in person or by proxy) voted in favour of the resolution.

Thanking Foster's shareholders for their support, Chairman David Crawford said: "This is a historic day for this great Australian brewing company. While the ownership of Foster's will soon change, the beer and the brands will still be produced in Australia and be developed and brewed by Australians."

Last month, the Australian government approved the SABMiller-Foster's deal on the condition that the key operations of the company would remain within the country.

In this regard, London-based SABMiller has agreed that the management of Foster's operations will continue to be located in Australia under SABMiller ownership.

In addition, SABMiller will not relocate any of Foster's existing brewing facilities offshore to produce beer for Australian domestic consumption and will continue to invest in Foster's iconic Australian brand portfolio.

The SABMiller-Foster's deal still needs approval from the Supreme Court of Victoria, a hearing for which is scheduled tomorrow.

If the Supreme Court of Victoria approves the deal, Foster's proposes to lodge the orders of the court with the Australian Securities and Investments Commission on December 2, after which Foster's shares will cease trading on the Australian Securities Exchange.

On November 25, SABMiller had said it expects the acquisition to be completed before the end of this year, pursuant to shareholders' nod.

The deal, once complete, would give SABMiller exposure to the growing Australian beer industry, as well as help in boosting the financial and operating performance of Foster's.

Foster's popular brands include Carlton Draught, Corona, Crown Lager, Pure Blonde, Carlton Mid and Carlton Dry. SABMiller's portfolio includes Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch.

In September, Foster's had accepted a takeover offer from SABMiller, nearly three months after rejecting an earlier proposal from the London-based firm, citing undervaluation.

Foster's has agreed to a cash offer of 5.10 Australian dollars (AUD) per share, which values the Australian entity's equity at about AUD 9.9 billion.

SABMiller and Foster's both have a significant presence in India.