KEY PLAYERS
SAB’S MAJOR SHAREHOLDERS AND WHAT THEY WANT
Santo Domingo family/BevCo A deal currently hinges on Colombia’s Santo Domingo family, which is SAB’s second biggest shareholder with a 14 per cent stake thanks to its sale of the South American beer group Bavaria to the London-listed brewer in 2005.
Unlike Altria, it did not come out in favour of the previous offer, and its two representatives on SAB’s board backed the other directors who rejected the approach.
Harvard-educated Alejandro Santo Domingo, who is engaged to the Duke of Wellington’s daughter, Lady Charlotte Wellesley, manages the family’s interests through the BevCo investment vehicle.
The family investments were previously run by Alejandro’s father, Julio, who died in 2011.
Shortly after InBev last week detailed its takeover approach, it was forced by the Takeover Panel to clarify that it “does not currently have the support” of the Santo Domingo family for its offer. Altria The US company behind Marlboro cigarettes is the largest shareholder in SABMiller with a near 27 per cent stake. This dates from its 2002 sale of Miller Brewing to SAB.
The company last week said it supported InBev’s proposal of £42.15 or higher, with a partial share alternative. It also urged SAB’s board to “engage promptly and constructively” with InBev to agree on the terms of a recommended offer.
Altria, which has around 9,000 employees, also said last week it “believes that a combination of these two companies would create significant value for all SABMiller shareholders”. Public Investment Corporation Wholly owned by the South African government, with the Minister of Finance as shareholder representative, PIC has a 3.42 per cent stake in SAB, which has ties with South Africa dating back to 1895. The brewer, known as South African Breweries until 1999, still has nearly 90 per cent of South Africa’s beer market and operates seven breweries there with brands including Castle Beer.
Before the sweetened approach, PIC – which manages more than $120bn (£78.2bn) in state-employee pensions – yesterday said that it backed the board’s decision towards InBev. SAB is currently one of the largest shareholdings in its portfolio and PIC has said it is keen to hold on to shares in the new business. InBev has sought to appease the South African government by promising to keep a listing in Johannesburg.