As an exercise in telegraphing your corporate intentions, they don’t come much better.
The Carlsberg Foundation, which controls the eponymous brewer, announced on Friday that it had applied to the Danish Ministry of Justice to amend its charter. Rather than having to hold 51 per cent of Carlsberg’s share capital, it wants the rules changed so that in future it can hold 51 per cent of the voting rights, but only 25 per cent of the capital.
The move would allow Carlsberg to just about double its capital base.
Why might it want to do that? Well, just look at the price of Scottish & Newcastle — up five per cent in a weak London market.
Nils Andersen, Carlsberg’s chief executive officer, was quick to state: “I see a lot of potential for expansion of the existing business primarily through organic growth and we have no acquisition plans which can’t be financed within the current capital structure.”
But then Povl Krogsgaard-Larsen, chairman of both the brewer and the foundation said: “Over the last seven years, Carlsberg has evolved through acquisitions and organic growth into a major player in the international brewing industry. However, if Carlsberg is to remain in a position to take part in the consolidation process, it will be necessary to create a possibility for the company to substantially increase its capital base.”
Despite all the recent scepticism over reports here that rivals Diageo and SABMiller were readying themselves for a carve up of S&N, it is clearly the case that all the major brewers are preparing themselves for some sort of M&A end-game in the sector.