Craft Brew Shareholders Upset Over Merger Bid (Seek to file Lawsuit)- (via Business Journal)
November 12, 2019
Tags: United States Craft Brew Anheuser Busch Inbev Corporate Affairs Mergers & Acquisitions
A group of Craft Brew Alliance shareholders are attempting to block the $321 million purchase of the company by brewer Anheuser-Busch Inbev NV. Under terms of the definitive merger agreement, Anheuser-Busch, which owns 31.2% stake in Craft Brew, will acquire the remaining shares in the company that it does not already own for $16.50 per share.
The deal would represent a hefty premium of approximately 122% to the preceding day. The deal is slated to close next year, pending approval by regulators and a majority of CBA shareholders not affiliated with A-B, officials said.
In August, A-B passed on an opportunity to buy all of CBA's remaining stock at $24.50 per share (about $328 million) or walk away from the deal with a one-time fee of $20 million. At the time, A-B said it would retain its nearly one-third stake in CBA. The shareholders allege that the purchase price of $16.50 per share is insufficient in light of the company's growth prospects and that deal-protection clauses in the merger agreement preclude other companies from submitting successful competing offers. In addition, shareholders allege that senior management of Craft Brew obtained personal benefits for their own self interests in agreeing to sell the company at that price that are not being shared with common stockholders.
Most of CBA's brands, which include Kona Brewing, Widmer Brothers, Redhook and Appalachian Mountain Brewery, already are distributed through A-B's independent wholesaler network. The companies have a commercial agreement, including distribution and brewing agreements, until 2028.
Craft Brew did not immediately respond to requests for a comment.
To contact the law firm on behalf of shareholders of Craft Brew for more information as to how you can participate with other shareholders in seeking a higher price at no cost or expense can call toll free 800.511.7037 or email at contact@tripplevy.com
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