The Hemel Hempstead, Hertfordshire-based company said it received a proposal from Carlsberg for the whole business on June 11
Britvic, the maker of Robinsons squash and J2O, has rejected a £3.1billion takeover bid by Danish brewing giant Carlsberg.
Britvic, based in Hemel Hempstead, Hertfordshire saw its shares surge up by 15% on Friday reflecting the market’s response to the offer. According to Britvic, the offer was made on June 11 – a proposal from Carlsberg for the whole business that assigned a value of 1,250p per share, equivalent to £3.1billion, to the company.
However, Britvic decided within a few days that the approach “significantly undervalues Britvic, and its current and future prospects” and dismissed the offer. It came a week after a 1,200p per share offer from Carlsberg which was also rejected. Britvic made it clear to its shareholders: “The board remains confident in the current and future prospects of Britvic.”
Adding to that: “It recognises its fiduciary duties and will consider any further proposal on its merits. There can be no certainty that any firm offer will be made for the company, nor as to the terms of any such offer, should one be made.”
Carlsberg released a statment saying::”Carlsberg believes that the proposal represents a compelling opportunity for Britvic shareholders to realise their investment in full cash at an attractive valuation. Carlsberg 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.”
It comes four years after Carlsberg’s significant expansion in the UK through its £780million joint venture with Marston’s. This partnership resulted in the creation of the Carlsberg Marston’s Brewing Company, which produces popular brands such as Hobgoblin and Pedigree.
