By Saabira Chaudhuri 

LONDON-- SABMiller PLC's board has agreed on the key terms of a sweetened potential takeover offer by Anheuser-Busch InBev NV valuing it at GBP68 billion ($104.5 billion), setting the stage for the world's two largest brewers to combine.

After weeks of back and forth, SAB Miller's board has agreed to unanimously recommend to its shareholders AB InBev's proposal to pay GBP44 a share to buy the London-based brewer, marking a 50% premium to its share price on Sept. 14. For 41% of stock, AB InBev is offering a partial-share, essentially a combination of cash and stock translating into a lower per-share price of GBP39.03.

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

If AB InBev can't get the necessary regulatory clearances for the deal to close, or its shareholders don't approve the deal, the brewer would pay SAB Miller a break up fee of $3 billion

Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com

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(END) Dow Jones Newswires

October 13, 2015 02:37 ET (06:37 GMT)