UK: SABMiller builds war chest for further acquisitions
The newly created SABMiller has indicated that it is gearing up for further acquisitions after it announced a share placing worth close to £614m (US$953m) today.
SABMiller, which was created when South African Breweries completed its acquisition of Miller Brewing earlier this week, said the placing would give it flexibility in the face of a rapidly consolidating global beer industry, including "opportunities to enhance its position as a global brewer".
Speaking today, Nick Chaloner, a company spokesman said: "Basically, we have a pipeline of deals." The areas expected to be targeted by SABMiller are the markets where it already has a foothold, such as China, Central America, India and Africa.
"We see ourselves as a global brewer," Chaloner said.
The brewer said that the price of the share placing would be announced once the bookbuilding process closes - expected to be on or before Thursday.
News of the placing came with a trading update from Miller. It said that since March, trading had been "broadly in line with expectations" and that Miller's financial performance in the second quarter will be in line with that of the same period in 2001.
Yesterday SAB announced that, following the approval of its shareholders at the EGM on 1 July and the receipt of satisfactory regulatory clearances, its acquisition of Miller Brewing from Philip Morris Companies had been completed.
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...
Rumours that SABMiller is poised to launch a bid for Empresarial Bavaria swept the trading floor yesterday (2 June)....
The Indian subsidiary of SABMiller, MBL Investments (Mysore), has acquired the Shaw Wallace Group's 50% interest in the brewing operations of SABMiller's Indian joint-venture....
The German-owned investment house, Deutsche Bank, has upgraded shares in the UK-based international brewing group, SABMiller, from "hold" to "buy", and raised its target for the shares from 830p to 95...
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....
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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