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Foster's rejects SABMiller's £7.3bn offer By Benjamin Chiou Date: Tuesday 21 Jun 2011 LONDON (ShareCast) - Australian brewing giant Foster's Group has rejected a A$4.90 per share proposal from SABMiller, saying that the offer "signifcantly undervalues the company". "The Board of Foster's believes that the proposal significantly undervalues the company in the context of a change of control and, as such, it does not intend to take any further action in relation to it," Foster's revealed in a press release. Foster's share price jumped by 13% after the announcement on the Australian Securities Exchange. The cash offer, confirmed by SABMiller on Tuesday, represents an enterprise value for the target of A$11.2bn (around £7.30bn), which the London-based brewer believes is attractive to Foster's shareholders. The offer price represents a premium of 14.5% to the trading price of Foster's before bid speculation arose (2 June). "We continue to believe that the proposal price is attractive and offers good value to Foster's shareholders. SABMiller can conclude a transaction quickly and will continue to seek engagement with the Board of Foster's to put an agreed proposal to Foster's shareholders," said SABMiller's chief executive officer Graham Mackay. He said that the aim of the acquisition is to strengthen the Foster's brand portfolio, which includes Foster's lager and Bulmers Original cider. "Australia has a profitable beer market in which Foster's is the leading brewer with 7 of the top 10 beer brands, a national distribution platform and scale production," the group said. ---
SABMiller plc proposal to acquire Foster's Group Limited SABMiller plc ("SABMiller") notes the announcement today by Foster's Group Limited ("Foster's") and confirms that it has made a non-binding, conditional proposal to the Board of Directors of Foster's to acquire all of Foster's shares for A$4.90 per fully paid share[1] in cash. The proposal to acquire Foster's is in line with SABMiller's strategy to create an attractive global spread of businesses, with a focus on developing strong and successful brand portfolios. Australia has a strong, wealthy and growing economy with consistent long term population growth in key demographics, and is well positioned to benefit from continued economic growth in Asia. Australia has a profitable beer market in which Foster's is the leading brewer with 7 of the top 10 beer brands[2], a national distribution platform and scale production. SABMiller has a proven track record of integrating brewing companies and improving the operating and financial performance of acquired businesses. SABMiller would use its expertise, best operating practices, management experience and global scale to enhance Foster's leadership position, strengthen and develop Foster's brand portfolio and improve Foster's operations and profitability. .............................................
http://www.investegate.co.uk/Article.aspx?id=201106210700097870I
Profits jump by a quarter at SABMiller By Benjamin Chiou Date: Thursday 19 May 2011 LONDON (ShareCast) - Brewing firm SABMiller has hailed an "excellent financial performance" for the year ended 31 March, as profits swelled by 24%, helped by strong growth in the emerging markets. As a result, the group hiked its full-year dividend by almost a fifth from 68 cents to 81 cents. SABMiller - famous for it Miller, Grolsch and Peroni lager brands - saw pre-tax profit jump from $2.93bn to $3.63bn, on a 7% rise in revenue to $28.31bn, from $26.35bn, which was attributable to higher volumes, selective price increases and a favourable brand mix. Total beverage volumes were 3% ahead of the previous year, at 270m hl, accompanied by share gains in a number of markets, the statement said. "SABMiller's financial performance for the year was very strong, benefiting from our sustained focus on our strategic priorities right across the business. Brand equities and sales execution drove profitable volume growth, and while we maintained focus on cost management, we continued to increase investment behind our local and international brand portfolios," according to chairman Meyer Kahn. Earnings, before interest, tax and amortisation (EBITA), increased by 15% from $4.38bn to $5.04bn, lifted by the performance in emerging markets. Latin America delivered EBITA growth of 17% on flat lager volumes, as the region was helped by price increases, lower raw material costs and fixed costs. Within the region, Peru's strong economic recovery prompted a 10% growth in lager volumes, while this was met with a decline of 6% in Colombia as a result of higher consumer prices. "Trading conditions across the group were mixed with improvements in most of our emerging markets, although constraints on consumer demand impacted performance in Europe and North America," the statement said. Nevertheless, EBITA in Europe grew by 2%, while North America achieved 20% growth despite a "challenging" US beer market. Basic earnings per share increased by a quarter to 152.8 cents, from 122.6 cents previously. --- BC
SABMiller sees volume growth outside North America Date: Tuesday 19 Apr 2011 LONDON (ShareCast) - Brewing giant SABMiller saw volume growth in all markets but North America in the quarter to 31March and said its overall financial performance was in line with expectations. MillerCoors, SABMiller’s US operation, saw a 1.4% fall in sales to retailers in the fourth quarter and a 2.5% fall in sales to wholesalers. The declines were slightly easier than those for the full year. In Latin America, volumes were up by 1% in the fourth quarter. Peru was a strong performer over the full year, seeing volume growth of 10%, while Colombia saw a 6% decline due to an emergency tax. The Peroni and Castle brewer said fourth quarter volumes in Europe were up by 2% against a weak period the previous year, though full year lager volumes declined by 3%. Poland and the Czech Republic suffered declines, but Russia was helped by gradual economic recovery towards the end of the year. A strong final quarter helped lift Africa full-year volumes by 13%, while South Africa, which is considered separately from the rest of the continent, saw growth of 2% over the full year. Lager volumes in Asia grew by 8% on an organic basis in the fourth quarter and by 10% for the year. SABMiller reported slightly lower raw material costs for the full year though they increased “moderately” in the second half.
http://www.investegate.co.uk/Article.aspx?id=201104190700141405F
Malcolm Wyman, Chief Financial Officer of SABMiller plc, said "We are delighted with the response received from Bavaria's bond investors to this transaction, which is the first of its kind in the Colombian market. Bavaria's bonds represented our single largest amount of priority debt and this transaction results in a significant reduction in the overall level of structural subordination in the group."
SABMiller plc Bavaria S.A. - Bond and Commercial Paper Programme and Exchange Offer On 30 March 2011, SABMiller plc announced that its subsidiary, Bavaria S.A., a leading producer of lager and other beverages in the Republic of Colombia, had established a COP$ 2,500,000,000,000 (approximately US$1,325,000,000) bond and commercial paper programme, to be used primarily to refinance Bavaria S.A.'s existing COP$1,910,320,000,000 (approximately US$1,012,000,000) bonds by means of an exchange offer under which bondholders would be offered new securities, in the form of bonds and commercial paper, in exchange for the existing bonds. The exchange offer was accepted by bondholders representing approximately 92.66% of the aggregate face amount of the existing bonds and, on 31 March 2011, Bavaria S.A. issued new securities with an aggregate face amount of COP$ 1,881,190,700,000 (approximately US$1,006,000,000). The new securities have been registered for trading in the secondary market of the Colombian Stock Exchange (Bolsa de Valores de Colombia) and admitted to the official list of the Cayman Islands Stock Exchange. The new securities benefit from a guarantee by SABMiller plc, which places bondholders in a pari passu position with the holders of other unsecured debt obligations of SABMiller plc in the circumstances described in the programme documents. This reflects SABMiller plc's policy of reducing the level of priority debt in the group. The programme will also be available to fund working capital and for other purposes, although no further issues are contemplated at this time. Correval S.A. acted as local structuring and placement agent in relation to the exchange offer and Bank of America Merrill Lynch acted as international structuring agent and financial advisor to SABMiller plc. Deceval acted as information agent and exchange agent.
A vigorous, independent and talented media has a major role to play in promoting and securing good governance in Africa. It can be a crucial bulwark to democratic values, to defending human rights and in contributing to the socio-political development of the region. We are proud to be associated with an initiative which has the potential to leave such a positive and lasting legacy." commented Mark Bowman, Managing Director, SABMiller Africa.
SABMiller plc invests in the future of African journalism SABMiller announces today that in 2011 it will become a co-sponsor of the David Astor Journalism Awards Trust, the UK based charity which aims to promote, strengthen and support independent journalism in Africa.
http://www.investegate.co.uk/Article.aspx?id=201103170954311299D
Brewing group SABMiller (SAB) said the merger of Tsogo Sun, its South African hotels and gaming associate, with Johannesburg-listed Gold Reef Resorts has become unconditional after all pre-conditions were met. SABMiller will exchange its 49% interest in Tsogo Sun for a 39.7% interest in the enlarged Gold Reef/Tsogo Sun business. Closure of the transaction is expected to take place on 24th February 2011. The shares gained 80.5p to 2,169p.
http://www.investegate.co.uk/Article.aspx?id=201102180708354573B
anything
Not much more, mate. ATB
SABMiller and Heineken get a thirst for Femsa http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article6859423.ece
"On the bid front, SABMiller is wanted on rumours that it has been in bid talks with Mexican brewer Femsa, although Dutch brewer Heineken is also said to be in the running to win control of the brewer of Sol and Dos Equis lagers."
i think there are some big players jumping of this ship in the short term. The deal below may help in the long term but in the short to mid term i think this will drop like a stone.
"Brewing giant SABMiller revealed that it has signed an agreement to pick up the remaining 50% stake in SABMiller Vietnam JV Company Limited. The South African company has acquired the stake from joint venture partner Vietnamese firm Vinamilk. Although the terms of the deal were not revealed, it is understood that the company's assets totalled 31.8 million dollars at the end of December. "Having acquired Vinamilk's interest in the Company, we look forward to developing and expanding our interests further in the growing and attractive Vietnamese beer market," said SAB's managing director of Asia. "This transaction will allow us increased flexibility to implement various business initiatives in Vietnam and the Company will complement our existing beer businesses in the broader Asian region." SAB shares fizzed 17.5p higher to 998p on the announcement." Time to keep an eye on for possible short.
I've noticed often (in fact always I have looked on various shares) the big millions buys seem to happen after half four. Is this that publication is normally delayed or for some other reason, or just me not seeing the other trades? I generally can't keep tabs throughout the day. 2ndly given the scale of SAB should I read anything into the amount of apparently late buys on this share in the last 3 days, thats buys each night of 5M or 6M and a few others, well over 20M in all? I guess its hardly likely to be taken over, is it an indication of anything more?
Evidently there is a campaign against Miller in the States and South Africa's power problems are hurting it too. But the biggest brewery in the world is making huge progress in eastern europe and China too, so you would think that may go someway to offset things. Shares seem to have been in freefall. I have some of these and am unsurprisingly feeling hungover, stopped drinking altogether 2 days ago with no effect, whats going on!
Big thanks for that info nickq, should have found it myself particularly as my sister lives in Houston.
Miller is the second largest beermaker in the USA. Sales are down because there's a big Anti-Miller movement going in the USA. It's all over the radio, tv, blogs, and they started a website too. They were donating to a bunch of political groups and now there's something like 120 organizations and the Catholics signed on to the boycott. On top of that Eskom in SA hasn't built a power plant for 2 decades and they were selling power to their neighboring countries so there is no one to buy it from. It's not like that's going to be resolved anytime soon. SABMiller can't sell or produce in their 2 main markets so they're pretty much dead.
I understand these dropped over last week because of SA power problems and although as SA co. they musty be affected, I don't see why so much when they are global producers. They were falling before anyway, so is there something else I am missing.