Foster's accepts $12.3b buyout bid

The board of Foster's Group (ASX:FGL) is unanimously recommending a revised $5.23 per share buyout bid from SABMiller

Foster's Group (ASX:FGL) has accepted a raised $12.3 billion takeover offer from brewing giant SABMiller.

London-headquartered SABMiller has offered to pay a total of $5.325 per share to acquire the beer maker.

This price is 13 per cent higher than SABMiller's original bid of $4.90, and assigns Foster's an enterprise valuation of 14.1 times its total ebitda for FY11.

Endorsing the offer to shareholders, Foster's chairman David Crawford said the new price "represents the value inherent in this iconic Australian company and in its brands and people". The board will unanimously vote their shares in favour of the takeover.

Foster's had rejected the original all-cash offer, advising shareholders to take no action on the deal.

If shareholders approve the revised bid, they will receive $5.10 for their shares, an extra 30 cents through a capital return program and the declared 13.25 cents per share final dividend for FY11.

The shareholder meetings to approve the deal will take place in December, and pending approval the transaction should be complete by the end of the year.

Following the announcement of the new offer, FGL shares climbed 7.57 per cent in Tuesday's trading to $5.260.

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