COLOMBIA: Bavaria head confirms - No sale
Grupo Empresarial Bavaria is not looking to sell up, its president has confirmed. The Colombian brewer would strongly consider a merger rather than a sale.
Speaking to reporters after Bavaria's annual shareholders meeting yesterday (29 March), Ricardo Obregon said: "We are exploring alternatives. We are trying to find a world-class company willing to establish a strategic alliance."
Following rumours over the past few months of interest from SABMiller, Scottish & Newcastle and Heineken, Alejandro Santo Domingo, the son of billionaire Julio Mario Santo Domingo who owns 70% of Bavaria said earlier this week that the family is looking for a stock-swap transaction as opposed to a sale.
At the shareholders meeting, Obregon said that Bavaria plans to invest US$230m in beer plants and marketing strategies in Colombia, Peru, Ecuador and Panama. The new figure comes in higher than the initial US$150m that Obregon projected a month ago.
In Colombia, the company plans to spend US$40m in a new beer plant in Cali - Colombia's third largest city - that is currently under construction, and the reconfiguring of a Bucaramanga plant.
Obregon also said a good portion of Bavaria's Colombia budget will be spent on a marketing campaign. The company "expects to increase beer consumption from 3% to 7% in 2005," he said.
Bavaria will pay COP111bn in dividends this year. Stockholders will get COP425 per share, a 5% increase over last year.
Having recorded a third consecutive year of volume, margin and earnings growth, global brewing force, SAB Miller, was in a position to give shareholders a 27% dividend increase and eye the acquisition...
Bavaria has authorised a five-year syndicated loan of up to US$250m....
The Corporación Financiera Internacional (IFC), an investment arm of the World Bank, has acquired a stake in Empresarial Bavaria....
The CEO of SABMiller has hailed the brewer's full-year figures as "very pleasing" today (19 May)....
SABMiller has seen its share rating upgraded....
Molson Coors will make a decision about its Brazilian operations soon, according to the brewer's head....
SABMiller has agreed to acquire the Slovakian brewer Topvar. Topvar is located in the city of Topoľčany in Western Slovakia and sold 569,000 hectolitres of beer in 2004....
SABMiller has had its share recommendation upped....
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