The Colombian beer maker, Bavaria, will hold a 49.1% stake in the Peruvian brewer Backus & Johnston (Backus) and enjoy a virtual monopoly in the Peruvian beer sector. The company has reported that it is aiming to launch an “offer for common shares in the Peruvian brewer, Backus, at $27.00 per share on March 20. Backus shares closed Tuesday at $16.“

“The offer would be open for 40 days from its official launch,” Bavaria said in a submission to the Lima Stock Exchange. "The price will be $27.00, which will be paid in the following way: $13.50 in cash and $13.50 in the form of a non-negotiable promissory note issued by Bavaria," the brewer said. Bavaria added that the offer would include "all of the shares, except for those shareholders who express their unwillingness to sell prior to the offer's expiration date."

Under Peruvian regulations, if a company acquires in excess of 25% in a public company, it has to make an open offer.

23 January, 2003