SABMiller Puts Doubt on Foster’s Financial Results
Giant global beverage company SABMiller scored Foster's Group on Friday as it claimed that the Australian brewer utilised questionable information on its latest financial figures to likely thwart the takeover proposal lodged by the UK-based firm.
In its submission to the Takeover Panel, SABMiller questioned the full-year financial report that Foster's had forwarded to the Australian Securities Exchange (ASX) on Aug. 23, which the former said was fraught with inconsistencies and questionable entries.
The panel said that SABMiller is convinced that Foster's submitted forward-looking declarations that were lacking solid data in order to shore up its financial standings, which the UK company said was an obvious ploy to raise its market value for possible takeover targets.
Earlier last month, SABMiller formally announced its intention to purchase the troubled brewer for $9.51 billion or $4.90 per share but the proposal was rejected by Foster's, claiming that the offer is grossly undervalued as per the target's present market value.
Now regarded as a predator suitor, SABMiller also insisted that Foster's net debt of $887 million as laid out in the financial report appears to have been computed by using accounting methods that are not acceptable by Australian standards.
"These statements do not meet the standards required in statements made in the context of a takeover bid, and are misleading and deceptive," SABMiller reportedly told the Takeover Panel as reported by The Australian Associated Press.
As Australia's lead agency in resolving takeover tussles, SABMiller formally requested the body to issue a directive that will prevent Foster's from further releasing statements that could affect the UK firm's declared intent to buy out the local brewer.
Such situation, the international beverage firm maintained, should be implemented at the soonest possible time and should remain in effect at least until the fate of its takeover bid has been determined.
Also, SABMiller has pleaded the panel to instruct Foster's to issue clarifications that will rectify its earlier financial data, which the suitor described as deceptive and misleading.