Britvic PLC announced Friday its decision to reject a sweetened £3.1 billion ($3.9 billion) takeover bid from Danish brewer Carlsberg AS, arguing that the proposal undervalues the British soft drinks maker’s current and future prospects.
Britvic £3.1B Carlsberg Offer : Carlsberg’s Unsolicited Proposal
The maker of popular brands such as Robinsons, Tango, and Rockstar Energy stated it received an “unsolicited proposal” from Carlsberg on June 11, offering 1,250 pence per share. This latest offer places Britvic’s value at £3.1 billion.
Carlsberg, which owns brands like Kronenbourg, Tuborg, and Holsten, initially proposed a 1,200 pence per share bid on June 6, valuing the UK company at just under £3 billion.
Legal and Financial Advisers
Britvic has engaged Linklaters LLP as its legal adviser, while Baker McKenzie LLP is advising Carlsberg. Additionally, Morgan Stanley & Co. International PLC and Europa Partners Ltd. are acting as financial advisers for Britvic, with Nomura International PLC serving Carlsberg in the same capacity.
Britvic £3.1B Carlsberg Offer : Board’s Unanimous Rejection
Following consultation with its advisers, Britvic’s board unanimously rejected Carlsberg’s bid. “The board remains confident in the current and future prospects of Britvic,” the company stated. “It recognizes its fiduciary duties and will consider any further proposal on its merits.”
Market Reaction and Future Prospects
Shares in Britvic, which trades on the FTSE 250 index, saw a significant rise, trading at 1,122 pence midmorning Friday—up 10.54% from 1,015 pence at Thursday’s close. Carlsberg has until July 19 to make a firm offer for Britvic or abandon the deal.
