Foster's Shareholders Approve SABMiller's A$9.9 Billion Bid

SABMiller PLC's (SAB.JO) 9.9 billion Australian dollar (US$10.2 billion) takeover of Foster's Group Ltd. (FGL.AU) cleared its last hurdle Thursday when the Australian brewer's shareholders approved the deal.

SABMiller received the go ahead from Australia's foreign investment review board last week, although on the condition beer operations and management of the iconic Australian brand remain in the country.

As expected, Foster's shareholders voted overwhelmingly in favor of the takeover, with about 98% of proxy votes for the bid. The full results of the vote of shareholders at a meeting in Melbourne Thursday are due to be released later in the day.

The bid, which had unanimous support from Foster's board, was criticized by some small minority investors who told the meeting they were concerned Australia was losing a well-known company to foreign interests.

"Foster's has been part of Australia for over a century and is certain to continue to feature in Australian life for many years to come," Chairman David Crawford told shareholders.

SABMiller earlier this month raised the cash offer for Foster's to A$5.40 a share to compensate for the loss of a 30 cents capital return following a tax ruling by Australian authorities, although that didn't alter the enterprise value of the bid.

The brewer of Castle, Grolsch and Miller Lite launched an initial bid for Foster's at A$4.90 a share in June, which was rejected and later went hostile when it was taken directly to shareholders at that price in August. The two patched up their differences when SABMiller agreed in September to raise its offer to A$5.10.

SABMiller has grown from a South African brewer that launched at the end of the 19th century through acquisitions in countries including Colombia, the Czech Republic and India. The addition of Foster's will broaden its focus away from emerging markets with a portfolio of market leading brands that includes Carlton Draught, Cascade and Victoria Bitter.

-By Robb M. Stewart, Dow Jones Newswires; [phone]; [e-mail]