Soft drinks player Britvic has announced it has rejected two takeover approaches from brewing giant Carlsberg.
It received an unsolicited proposal from Carlsberg for a cash offer on 11 June to acquire the entire company for 1,250p per share, which would value Britvic at around £3.1bn.
The Britvic board together with its advisers “carefully considered the proposal”, and concluded that it “significantly undervalues Britvic, and its current and future prospects”.
Accordingly, Britvic’s board unanimously rejected the bid on 17 June 2024.
The proposal was Carlsberg’s second bid for the group having initially had a 1,200p bid on 6 June knocked back.
Britvic’s board said it remains confident in the current and future prospects of Britvic.
However, it said it recognises its fiduciary duties and will consider any further proposal on its merits.
Carlsberg said on Friday (21 June) it believes its bid represents a “compelling opportunity for Britvic shareholders to realise their investment in full in cash at an attractive valuation”.
It points out the 1,250p bid is a 13.1 times multiple of Britvic’s adjusted EBITDA and represents a 29% premium on its share price of 970p on 19 June.
Carlsberg said it 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”.
Carlsberg is now “considering its position”.
Any offer, if made, is likely to be solely in cash and is expected to be fully debt financed.
Britvic shares have jumped 12.3% to an all-time high of 1,140p on the news.
