SABMILLER ACQUIRES FOSTERS INDIA

SABMiller plc, one of the world’s leading brewers, recently announced that it has entered into an agreement to acquire a 100% interest in Foster’s India for a consideration of US$120 million on a cash-free debt-free basis, subject to certain conditions being fulfilled. Under the terms of the agreement, SABMiller will assume ownership of all Foster’s assets in India including the Foster’s brand in the territory.

Foster’s India currently operates one brewery based in Aurangabad in the state of Maharashtra with a licenced annual capacity of 350,000 hectolitres. The company produces, distributes and supports Foster’s Lager, Amberro Mild and Amberro Strong beer brands in the Indian market. In the year ended 30 June 2006, total beer sales were 236,000 hectolitres (2005: 209,000 hl) with Foster’s Lager representing 88% of total production and sales (2005: 85%).

India is the third largest market for the Foster’s brand globally and it has achieved a CAGR of 13% since operations commenced in 1998. It has a presence in 19 Indian states and has a substantial share of the mild beer segment in the strategic state of Maharashtra.

With Fosters adding around 4.5 million case per year, SABMiller’s production will go up to 35 million cases every year, while its market share will increase by 2-3 percent points to around 37 percent.

In case SABMiller is able to acquire Mohan Meakin’s beer brand, its market share will go up by another 6-8% taking it to around 45 percent.