SABMiller shares soared to a record high on Tuesday after the brewer announced a $7.8-billion deal in which it would acquire a controlling interest in Colombian brewer Bavaria S.A, Latin America's second-largest brewer.

Shares rose 10.6 percent to 115 rand, before ending 9.39 percent higher at 113.70 rand on the JSE. In London, SABMiller shares jumped 10.61 percent to 980 pence.

The transaction with the Santo Domingo Group will be effected by way of a share swap, which will result in the Santo Domingo Group owning a 15.1 percent economic interest in SABMiller.

SABMiller said that the total implied enterprise value of Bavaria is approximately $7.8-billion.

According to the statement, Bavaria is the second-largest brewer in South America with leading market shares in Colombia, Peru, Ecuador and Panama.

Bavaria reported a turnover of $1.904-billion and earnings before interest, tax, depreciation and amortisation of $797-million for the year ended December 2004.

The combined company will be the world's second-biggest brewer by volume, and will mean SABMiller is the most international stock on the JSE, operating in 40 countries, Business Day reported.

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