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Johannesburg - Public Investment Corporation (PIC) is in talks with SABMiller over an improved offer from Anheuser-Busch Inbev, the state pension fund said on Wednesday.
"We are in discussions with SABMiller on the offer price and would not like to make our view public at this point in time," PIC head of corporate affairs Deon Botha said in response to emailed questions.
The PIC is SABMiller's fourth largest shareholder.
AB InBev raised its $100bn-plus bid for rival brewer SABMiller on Tuesday in an attempt to quash investor dissent over an offer made less attractive by a post Brexit vote fall in the pound.
On Wednesday a person familiar with the matter said SABMiller management has suspended work on integrating the brewer’s operations with that of suitor Anheuser-Busch InBev NV.
SABMiller management sent the request to employees, said the person, who asked not to be identified as the matter is private. Representatives for AB InBev and SABMiller declined to comment.
The development sent shares of Molson Coors Brewing Co. down as much as 8.9%, as the US brewer is set to acquire SABMiller’s stake in the MillerCoors brewing venture as part of the deal, which is still awaiting approval from Chinese regulators. The news came after European markets closed, with SABMiller falling 0.7% to 4 380 pence in London, and AB InBev declining 2.3% to €113.1.
The move comes as AB InBev has raised its cash bid for the British brewer to account for the pound’s plunge, yet investors including Aberdeen Asset Management have said the revised proposal undervalues the company and remains unacceptable because stockholders aren’t being treated equally.
SABMiller said Tuesday that its board would consult shareholders about AB InBev’s new offer and make an announcement thereafter.
