Last checked at 
(Alliance News) - Britvic PLC on Monday accepted a GBP3.3 billion takeover approach from Denmark's Carlsberg AS.
The Hemel Hempsted-based soft drinks manufacturer said the deal values each Britvic share at 1,315 pence per share. This comprises 1,290p per share in cash and a special dividend of 25p.
The deal values Britvic, which makes Robinsons, J2O and Tango, at around GBP3.3 billion on a fully diluted basis with an implied enterprise value of around GBP4.1 billion.
Britvic had previously rejected two bid proposals from the Danish brewer. The second of these, made on June 11, valued the firm at GBP3.20 billion or 1,250p per share.
Shares in Britvic rose 4.6% to 1,266.00p each in London on Monday.
Britvic's Non-Executive Chair Ian Durant said the board believes that the "strategic merits of this offer are compelling," and the offer provides shareholders with the opportunity to receive the "certainty of cash consideration that reflects the current strength and medium-term prospects of the Britvic business".
As a result, the board gave its unanimous backing to the deal. Directors, representing 0.2% of the Britvic share capital, pledged to back the offer.
Carlsberg said it intends to accelerate commercial and supply chain investments in Britvic to drive future growth, and to create a single integrated beverage company in the UK named Carlsberg Britvic.
The deal will be implemented by way of a court-sanctioned scheme.
Britivc also provided a trading update for the three months to June 30, the financial third quarter.
Revenue climbed 6.3% to GBP502.9 million, despite poor weather in Europe, down from growth of 9.9% to GBP476.7 million in the comparable period a year ago.
Chief Executive Simon Litherland said trading has been "strong", benefiting from both "positive price/mix and volume growth".
"Demand for our brands remains strong, as we enter the key summer trading period," he added.
In addition, Marston's PLC said it had sold its 40% interest in Carlsberg Marston's Ltd to a subsidiary of Carlsberg for GBP206 million in cash.
Marston's will continue its strong partnership with Carlsberg Marston's through the long-term brand distribution agreement which remains in place.
Marston's will use proceeds for to pay down debt, achieving its medium-term target of less than GBP1 billion of net debt in a "significantly accelerated" time frame.
Wolverhampton-based brewer Marston's said the deal is an "attractive result" for shareholders with the outcome earnings accretive.
Chief Executive Justin Platt said: "This deal further strengthens our balance sheet, significantly reducing our debt by over GBP200 million."
Marston's expects interest expense to reduce by around GBP18 million annually versus the board's current expectations, as a result of the sale.
Shares in Marston's jumped 19% to 36.40 pence on Monday in London.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights reserved.
