SABMiller and AB InBev reach agreement in principle on takeover

SABMiller (SAB) on Tuesday announced that its board had agreed on the key terms of the sweetened potential takeover bid by Anheuser-Busch InBev.

Under the terms of the possible offer, SABMiller shareholders would be entitled to receive £44 per share in cash.

"The board of SABMiller has indicated to AB InBev that it would be prepared unanimously to recommend the all-cash offer of £44.00 per SABMiller share to SABMiller shareholders, subject to their fiduciary duties and satisfactory resolution of the other terms and conditions of the possible offer," the brewer said.

SABMiller has asked the takeover panel to extend the "put-up-or-shut-up deadline", under which AB InBev needs to make a firm offer for it or walk away, to 28 October. The previous deadline was 14 October