UK: Heineken and Carlsberg raise offer for S&N
The consortium said that it was now offering a price of 750 pence per share in cash, valuing the group at an equity value of GBP7.3bn and an enterprise value of approximately GBP9.7bn.
The original offer, made last month, was at 720p a share. The consortium noted that the revised bid represented a premium of 41% to the share price of 531p, which it said was the closing price on 28 March (the date immediately before speculation first arose around a possible offer for S&N).
The bid also represented a historic transaction multiple of 13.6 times S&N's EBITDA for the year ended 31 December 2006, a statement said.
Commenting on the increased proposal, Jean-Francois van Boxmeer, chairman and CEO of Heineken said: "The increased proposal represents a very attractive opportunity for S&N shareholders to obtain a price which is materially higher than the standalone value of the group. Heineken will act in a financially disciplined manner in its pursuit of this transaction."
Jørgen Buhl Rasmussen, CEO of Carlsberg said: "The consortium's increased proposal of 750 pence per share offers S&N shareholders the opportunity to secure a full and fair price for the entire business. Carlsberg will only proceed with a transaction if it believes it is in the interests of its shareholders."
In a statement, Heineken and Carlsberg said that following the S&N board's dismissal of the consortium's initial proposal and its refusal to engage in discussions to date, the consortium has decided to provide details of its increased and full and fair proposal directly to the market.
The consortium also added that it had noted the speculation about a possible sale of Elidis in France.
"Whilst this may result in a short term financial gain for S&N, Carlsberg believes that such a divestment may be detrimental to the valuation of the French business. We would therefore encourage the S&N board to postpone entering into any binding agreement on such a divestment until Carlsberg has had an opportunity to assess the full implications of such a divestment," the statement said.
Under the increased proposal, the economic contributions by Carlsberg and Heineken to the bid will remain approximately 54% and 46% respectively.
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