SAB backs improved £79bn bid from InBev

THE BOARD of drinks giant SABMiller has backed an improved takeover offer from Budweiser brewer Anheuser-Busch InBev.

Shareholders in SABMiller will now receive £45 a share, up from its earlier offer of £44, valuing SABMiller at about £79bn.

Investors had been mulling over the increased offer made on Tuesday triggered by the collapse in the value of the pound after the Brexit vote.

The pound has plunged in value versus the dollar since the June 23 vote, falling more than 10 per cent to 1.31 US dollars.

The announcement comes after AB InBev cleared another major hurdle in its pursuit of the London-listed drinks firm after winning regulatory backing in China.

Jan du Plessis, chairman of SABMiller, said: “The board’s decision was difficult given changes in circumstances since the board originally recommended £44 per share in cash last November.

“At that time we were satisfied that the 50 per cent premium to the undisturbed share price appropriately reflected the quality of the business and its long-term prospects.

“Since then, various factors have affected the value of the offer, most importantly the impact of the Brexit vote on the value of sterling and the re-rating of comparable companies.

“This has made the board’s decision more challenging.”