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 The earlier than expected statement from the maker of beers
including Peroni and Grolsch was seen by some analysts as aimed at
trying to ensure a higher bid price from AB InBev, maker of
Budweiser and Stella Artois.
SAB said it had brought forward its trading update to ensure the
timely release of information during what is classed as an offer
period.
A U.S. newspaper reported late on Monday that SAB's management was
leaning towards trying to fight off a takeover. The company declined
to comment on the New York Post report.
SAB said group revenue, excluding currency effects, rose 6 percent
in its second quarter, which ended on Sept 30, while volumes rose 2
percent. That marked an improvement from the first quarter, when
revenue rose 3 percent and volume was flat.
The positive picture was clouded by the weakness of a range of
currencies against the U.S. dollar, such as the South African rand.
Reported group revenue, taking into account currency effects, fell 9
percent in both the first half and second quarter.
"While adverse currency movements have materially impacted our
reported results, we have a strong business with exceptional
long-term prospects," Chief Executive Alan Clark said in a
statement.
"Our strategic priority of driving superior top-line growth through
strengthening our brand portfolios and expanding the beer category
is showing clear results."
Growth was driven by demand in its Latin American and African
markets, which are seen as being among the most attractive to AB
InBev. Strength in those markets offset declines for SAB in Asia
Pacific and North America.
EARLY STATEMENT
The update had been scheduled for Oct. 15, the day after the
deadline for AB InBev to make a firm offer for SAB, following
disclosure on Sept. 16 of an initial approach.
"Overall this was a good trading statement in our opinion and the
timing of it has the potential to ensure ABI has to offer a rich
price for the company," said RBC Capital Markets analysts in a note.
A takeover of SABMiller, the world's second largest brewer, could
cost upwards of 68 billion pounds ($103 billion), according to
analysts' estimates.
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Despite the strong performance, SABMiller's shares were down 1
percent at 3725 pence at 0400 EDT, underperforming the FTSE 100
index, which was up slightly.
Through Monday's close, SAB shares are up 25 percent since AB
InBev's takeover approach was revealed. Some of that premium might
be coming out of the stock, analysts said, on speculation the deal
might not go through, given the latest media report.
"If SAB decides/manages to go it alone, there is modest downside to
the stock," said Morningstar analyst Phil Gorham. "Which, of course,
is another argument for shareholders wanting it to go through."
SAB Chairman Jan du Plessis last year successfully defended miner
Rio Tinto, where he is also chairman, against a takeover bid from
Glencore.
Still, SAB is seen as having somewhat limited strategic defense
options. It tried to buy Heineken last year but was publicly
spurned. Other possible combinations mooted by analysts include
Diageo, Carlsberg or Coca-Cola, though the likelihood of any of them
coming to fruition is unclear. ($1 = 0.6598 pounds)
(Additional reporting by Sarah Young; Editing by Greg Mahlich and
Keith Weir)
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