| Fri 4 Aug 2006, 8:00 | | SABMiller Acquires Fosters India |
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SAB
SOSAB
SABMiller Acquires Foster"s India
SABMiller plc
JSEALPHA CODE : SAB
ISSUER CODE SOSAB
ISIN CODE: GB0004835483
Ref 34/2006
SABMILLER ACQUIRES FOSTER"S INDIA
London and Johannesburg, 4 August 2006. SABMiller plc, one of the world"s
leading brewers, today announces it has entered into an agreement to acquire
a 100% interest in Foster"s India for a consideration of US$120 million on a
cash-free debt-free basis, subject to certain conditions being fulfilled.
Under the terms of the agreement, SABMiller will assume ownership of all
Foster"s assets in India including the Foster"s brand in the territory.
Foster"s India currently operates one brewery based in Aurangabad in the
state of Maharashtra with a licenced annual capacity of 350,000 hectolitres.
The company produces, distributes and supports Foster"s Lager, Amberro Mild
and Amberro Strong beer brands in the Indian market. In the year ended 30
June 2006, total beer sales were 236,000 hectolitres (2005: 209,000 hl) with
Foster"s Lager representing 88% of total production and sales (2005: 85%).
India is the third largest market for the Foster"s brand globally and it has
achieved a CAGR of 13% since operations commenced in 1998. It has a presence
in 19 Indian states and has a substantial share of the mild beer segment in
the strategic state of Maharashtra.
SABMiller India will look to extend Foster"s Lager nationally through its
network of ten breweries and seek significant cost benefits from brewing and
distributing the brand locally. The Aurangabad brewery will also provide
additional capacity for SABMiller"s presence in Maharashtra as well as a
platform for access to the Mumbai market.
SABMiller India is the subcontinent"s second largest brewer. Its brand
portfolio includes Royal Challenge, Haywards 5000, Castle and the recently
launched Haywards Black, India"s first stout beer.
Commenting on the acquisition, Andre Parker, Managing Director of SABMiller
Africa and Asia, said:
"This transaction enhances our existing portfolio in India and provides us
with an exciting opportunity to further increase our premium brand offering.
The acquisition also supplies much needed capacity to fuel the strong growth
we have experienced so far this year.
"With SABMiller"s extensive footprint throughout the subcontinent,
complemented by Foster"s share of Maharashtra and the important Mumbai
market, India remains a principal growth market for SABMiller."
Trevor O"Hoy, President and Chief Executive Officer of Foster"s Group, said:
"This is an outstanding deal for Foster"s Group, struck with one of our most
important long-term partners. While the Foster"s brand has enjoyed great
success in India, the opportunity for us to continue to grow the brand
profitably from a small production and distribution base, in a challenging
market structure, was limited.
"The value we have achieved through the outright sale of the Foster"s brand,
together with the brewery and local brands, far outweighs the potential
future value of retaining Foster"s and continuing to own and operate the
business, or pursuing a licence agreement."
Ends
Notes to editors:
SABMiller
SABMiller plc is one of the world"s largest brewers with brewing interests
or distribution agreements in over 60 countries across five continents. The
group"s brands include premium international beers such as Miller Genuine
Draft, Peroni Nastro Azzurro and Pilsner Urquell, as well as an exceptional
range of market leading local brands. Outside the USA, SABMiller plc is
also one of the largest bottlers of Coca-Cola products in the world.
In the year ended 31 March 2006, the group reported US$2,626 million
adjusted pre-tax profit and a turnover of US$15,307 million. SABMiller plc
is listed on the London and Johannesburg stock exchanges.
Foster"s Group Limited
Foster"s Group is a leading global drinks company, with a portfolio of wine,
beer, spirits, ready-to-drinks, ciders, and non-alcohol brands. Based in
Melbourne, Australia and listed on the Australian Stock Exchange, Foster"s
Group is the global leader in premium wine, and has Australia"s leading
portfolio of alcohol brands.
With an approximate market capitalisation of US$8 billion and annual
revenues of US$4 billion annually, Foster"s Group employs over 10,000 people
in production, sales and marketing offices in Australia, North America,
Europe, and Asia.
This announcement is available on the company website: www.sabmiller.com
High resolution images are available for the media to view and download free
of charge from: www.vismedia.co.uk
Enquiries:
SABMiller plc Tel: +44 20 7659 0100
Sue Clark Director of Corporate Tel: +44 20 7659 0184
Affairs
Gary Leibowitz Senior Vice President, Tel: +44 20 7659 0174
Investor Relations
James Crampton Media Relations Manager Tel: +44 20 7659 0172
This announcement does not constitute an offer to sell or issue or the
solicitation of an offer to buy or acquire securities of SABMiller plc (the
"Company") or any of its affiliates in any jurisdiction or an inducement to
enter into investment activity.
This document includes "forward-looking statements". These statements may
contain the words "anticipate", "believe", "intend", "estimate", "expect"
and words of similar meaning. All statements other than statements of
historical facts included in this announcement, including, without
limitation, those regarding the Company"s financial position, business
strategy, plans and objectives of management for future operations
(including development plans and objectives relating to the Company"s
products and services) are forward-looking statements. These forward-
looking statements involve known and unknown risks, uncertainties and other
important factors that could cause the actual results, performance or
achievements of the Company to be materially different from future results,
performance or achievements expressed or implied by such forward-looking
statements. These forward-looking statements are based on numerous
assumptions regarding the Company"s present and future business strategies
and the environment in which the Company will operate in the future. These
forward-looking statements speak only as at the date of this announcement.
The Company expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward-looking statements contained in this
announcement to reflect any change in the Company"s expectations with regard
thereto or any change in events, conditions or circumstances on which any
such statement is based.
Any information contained in this announcement on the price at which the
Company"s securities have been bought or sold in the past, or on the yield
on such securities, should not be relied upon as a guide to future
performance.
Date: 04/08/2006 08:00:13 AM Produced by the JSE SENS Department
