SABMiller plans to buy out all Pilsner Urquell shares

Modern Brewery Age, August 1, 2005

SABMiller said last week that it will try to force a buyout of minority shareholders in Plzensky Prazdroj, brewer of Pilsner Urquell.

The company has called a general meeting August 26 with the aim of acquiring the 3.1% of shares in the Czech brewer that it does not yet own.

These shares are primarily owned by individuals, and have a value of about $18 million, SABMiller said in a statement.

SABMiller will be allowed to squeeze out the minority shareholders under a new Czech law that allows majority owners with 90% control of a company to buy out remaining shareholders.

After the buyout, SABMiller will become the sole owner of Plzensky Prazdroj. The company says the buyout should be complete by October.

Plzensky Prazdroj produces about 9.5 million hectolitres of beer a year, and is the biggest brewer in the Czech Republic.