Britvic rejects $3.9 billion takeover offer from Carlsberg

By Louis Goss

Britvic shares jumped on Friday on news the British soft- drinks seller turned down an unsolicited GBP3.1 billion ($3.9 billion) takeover offer from Danish brewer Carlsberg.

In a statement, Britvic said it had rejected Carlsberg's cash offer of 1,250 pence for each share of the FTSE-250 company that would represent a 21% premium on its closing share price Thursday.

In explaining its rationale, the maker of J20 and other beverages said it believes Carlsberg's offer "significantly undervalues Britvic, and its current and future prospects," but added that it would "consider any further proposal" from the Copenhagen beer seller.

U.K.-listed shares in Britvic (UK:BVIC) jumped 15% on Friday to around 1,165 pence per share, having previously advanced by 21% over 12 months, not including gains from Friday's deal news.

Carlsberg shares (DK:CARL.B) listed in Copenhagen fell 8% on Friday.

Britvic said Carlsberg first approached it on June 6, when it offered to fully-acquire the business for 1,200 pence per share, before it later upped its price via a new offer on June 11 of 1,250 pence per share.

The Hemel Hempstead-headquartered company, which was started in 1938, said it later rejected Carlsberg's second 1,250 pence per share offer on June 17.

In May, Britvic reported sales rose 11.2% in the six months ending in March 2024 to GBP880.3 million, helping drive a 10.1% increase in its pre-tax profits to GBP59.9 million over the same period of time.

Britvic's balance sheet was boosted by strong sales of Tango and Lipton Ice Tea in Britain, alongside bumper 34.7% revenue growth in Brazil and surging sales of its plant-based milk alternative Plenish.

In the U.K., Britvic obtained a license to distribute PepsiCo products including Gatorade, 7UP, Pepsi and Lipton Ice Tea in 2020.

In its full-year results, Carlsberg, which also sells Mythos and Tuborg alongside its namesake lager, said the macroeconomic environment led to a drop in the volumes of beer it sold in Europe in 2023.

-Louis Goss

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06-21-24 0517ET

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