Two separate statements from the pair today (21 June) confirmed a takeover approach, with Britvic saying the latest offer, for around US$3.93bn, “significantly undervalues Britvic and its current and future prospects”. Carlsberg countered that the bid “represents a compelling opportunity for Britvic shareholders”.
The first move by Carlsberg occurred on 6 June. The “unsolicited approach” was turned down by Britvic’s board, as was the second improved offer, submitted on 11 June.
According to the brewer, its most recent bid represents a 13.1x multiple of Britvic’s latest full-year’s EBITDA. In what appears to be a direct appeal to shareholders, Carlsberg also highlighted the 29% premium on its target’s closing share price on 19 June.
The Robinsons cordial and Fruit Shoot still drink owner, which is also PepsiCo’s bottler in the UK, has a current market capitalisation of GBP2.76bn (US$3.51bn).
“Carlsberg believes that the potential transaction would enable it to capture appealing long-term growth opportunities from Britvic’s comprehensive portfolio of leading brands in an attractive segment of the beverage market where Carlsberg already has a strong track record,” the company said.
A spokesperson declined to comment further on the rationale when contacted by Global Drinks Intel.
Britvic clarified that according to the UK’s takeovers & mergers code, Carlsberg has until 19 July to “announce a firm intention to make an offer” or not.
In results for the first three months of this year, Carlsberg reported a sales increase of 6.4%.
