By Andrew Starke
The Foster’s Group has again rejected a SABMiller bid with the giant global brewer set to make its case to shareholders as it looks to bypass Foster’s board of directors.
After initially making a bid in June, SABMiller upped the ante this week by proposing a conditional, off-market, cash takeover offer for all of the issued shares in Foster's.
Foster’s said it had carefully considered the proposed offer and will recommend shareholders reject it.
”The Board of Foster's reiterates its belief that an offer price of $4.90 per share significantly undervalues the company in the context of a change of control,” said the company in a statement.
”In addition, the high level of conditionality further detracts from the proposed offer.”
Both parties will now make their case to shareholders although the Foster's board has advised that they take no action and ignore all documents and communications from SABMiller in relation to its proposed offer.
Detailed information in relation to SABMiller’s offer will be set out in a Bidder's Statement to be lodged with the Australian Securities and Investments Commission and provided to Foster's and the Australian Securities Exchange shortly.
SABMiller expects to mail the Bidder's Statement to Foster's shareholders approximately two weeks after it is provided to Foster's.