Britvic, the British soft drink maker, has rejected a £3.1bn takeover bid by Carlsberg Group, the Danish brewer, which it says undervalues the company.
Shares in Britvic jumped 10% on Friday morning after the drinks company, whose brands include J20 and Robinsons, said Carlsberg had made two takeover bids this month, with the latest cash offer at £12.50 a share. Shares were trading at £11.20 on Friday.
The FTSE 250 company said its board rejected the offer made on June 11, as well as an earlier approach of £12 per share received on June 6, after concluding it undervalued Britvic.
Under takeover rules, Carlsberg must indicate its intention to make a formal bid for Britvic by July 19 or withdraw.
Britvic has an exclusive license with PepsiCo in the UK and Ireland to manufacture and sell Pepsi MAX, 7UP, Rockstar Energy and Lipton Ice Tea.
The company was founded in the United Kingdom in the 1930s as the British Vitamin Products Company and used soft drinks as an affordable way to deliver vitamins to consumers. It now has 39 brands in 100 countries, including Brazil, France and Ireland.
The company reported strong revenue growth in May, supported by demand for its products from international markets, including Brazil.
It announced a £75m share buyback program and said revenue for the six months ended March 31 rose 11% to £880m from £794m in the same period last year, and interim profits pre-tax was up 10% to £60m.
Brtivic is also well known for its Robinsons brand, which had a sponsorship partnership with the Wimbledon tennis tournament ending in 2022 after 86 years. Robinsons was an independent company until it was acquired by Britvic in 1995.
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Robinson’s association with Wimbledon dated 1935when a drink containing barley, lemon juice and sugar was made for tennis players at the All England Lawn Tennis Club the year British player Fred Perry won the gentlemen’s singles title.
The barley water drink was created by Eric Smedley Hodgson and was handed out to players and referees during a visit to Wimbledon. It was so popular that they invited him every year.
