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.
Beam Global Spirits & Wine was the frontrunner to land Absolut vodka but was pipped at the post by Pernod Ricard. However, president and CEO Tom Flocco says the company has quickly put that disappoint...
Shares in the Dr Pepper Snapple Group officially begun trading on the New York Stock Exchange on Wednesday (7 May). Headlines accompanying the first few days of this newly-listed soft drinks group wer...
Global soft drink giant The Coca-Cola Company has announced it is to invest US$50m in the expansion and up-scaling of its bottling lines across Kenya....
The C&C Group has announced that, following a fall in cider sales, the company's operational profit has declined 37.3% over the last financial year....
The top ten most visited stories on just-drinks this week:...
Coming up at this year's London International Wine & Spirits Fair are products from Constellation, Diageo and Cocoa Farm. To keep track of all the LIWF news see our diary every day....
The Coca-Cola Co. has signed a letter of intent to acquire a number of water and energy drink brands in Denmark and Finland from regional bottling partner Carlsberg....
Castel has acquired Oenoalliance, a union of family wine merchants specialising in Bordeaux wines and Languedoc Roussillon wines, for an undisclosed sum....
- A tobacco analogy soft drinks will want to embrace
- Pernod's Portman Group penalty - a coincidence?
- just The Preview - SABMiller's Q1
- just Five Years Ago: A-B InBev sells Oriental
- Cleaning China's seedier side brings Remy balance
- Diageo faces public consultation over W&M sale
- William Grant silent on Drambuie bid talk
- Diageo's Captain Morgan Facebook ad banned
- Bacardi to fight US football team legal action
- Remy posts Q1 sales drop as Edrington loss bites