SABMiller's JSE listing safe

Johannesburg - Anheuser-Busch (AB) InBev’s £65.2bn (R1.34trn) offer for SABMiller [JSE:SAB] addresses concerns raised about remaining on Johannesburg’s stock exchange (JSE), according to the Public Investment Corporation (PIC), the target company’s fourth largest shareholder.

“The PIC’s preference has always been for SABMiller to remain listed in the country of its origin, South Africa,” Africa’s largest money-manager said in an e-mailed response to questions on Wednesday. “Listing on the JSE will allow other investors to participate in the future growth of the company.”

AB InBev’s latest offer includes an intention to have a secondary listing on South Africa’s bourse and plans to keep Johannesburg as an African headquarters for the combined group, the brewer said in a separate statement. The Leuven, Belgium-based company also plans to form a South African board.

The Budweiser maker is willing to pay £40.24 (R827.96) a share in cash and stock for a majority of its nearest competitor, whose brands include Peroni and Grolsch. SABMiller, which rejected two prior offers made privately of £38 (R781.87) a share and £40 (R827.96) a share, will review this latest approach.

“The PIC will await guidance from the SABMiller board regarding financial benefits and other merits of the proposed merger,” the Pretoria-based company, which owns 3.14% of SABMiller, said in the statement.

WATCH: SABMiller looks to brew the right deal with AB InBev

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