SABMiller receives final approval to buy Foster’s

Having vented their anger at Foster’s Annual Meeting on 25 October 2011 over the allegedly excessive bonuses awarded to Foster’s CEO John Pollaers, shareholders in brewer Foster’s nevertheless gave an overwhelming go ahead to the takeover by SABMiller. On 1 December 2011 at the Scheme Meeting, 99 percent of the shareholders voted in favour of the deal. An OK from at least 75 percent had been required by Australian law.

Following the vote, on 2 December 2011 Foster’s was de-listed from the stock exchange.

SABMiller now expects the takeover to go through before the end of the year.

The deal between the two brewers was agreed in September, after Foster’s rejected SABMiller’s initial offer.

On 25 November 2011, the Australian government had given its consent, too, on the condition that the management of Foster’s operations and brewing facilities will remain in Australia and that SABMiller will to continue investing in Foster’s iconic Australian brand portfolio consisting of Victoria Bitter, Carlton Draught, Corona, Crown Lager, Carlton Mid, Carlton Dry and Pure Blonde brand beers.

Also, in November the SABMiller was forced to boost the cash portion of its bid by AUD 582 million, or AUD 0.30 per share to make up for the loss of a AUD 0.30 cents capital return after a tax ruling from Australian authorities.

The total value of the deal, including debt, is AUD 11.5 billion.

As shareholders are counting their cash, the longest takeover saga in the brewing industry draws to a close. Finally, farewell to Foster’s.