AB In Bev shares make steepest gain in at least five months in response to the deal
19 July 2019 - Anheuser-Busch InBev (Euronext: ABI) (NYSE: BUD) (MEXBOL: ANB) (JSE: ANH) has agreed to divest Carlton & United Breweries (CUB), its Australian subsidiary, to Asahi Group Holdings, Ltd. for 16.0 billion AUD, equivalent to approximately 11.3 billion Dollars, in enterprise value.
The deal gives Asahi a major foothold in Australia, furthering its strategy to build a global presence.
AB InBev said once completed, the divestiture of CUB would help accelerate its expansion into other fast-growing markets in the Asia-Pacific (APAC) region and globally.
AB InBev did not immediately respond to Reuters' request for comment.
AB InBev last week canceled the planned IPO of its Asian business, in which it aimed to raise almost $10 billion, citing market conditions, scrapping what would have been the largest IPO of the year. Some reports suggested investors thought the asking price overvalued.
Anheuser-Busch InBev SA was reportedly considering selling its business units in Australia, Central America and South Korea after it canceled the initial public offering of its Asian business.
Aubameyang compares Ozil’s blond hairstyle to that of US star Megan Rapinoe
We are happy to have him". "I want to help the team and I think it will be going well this season, for me and the team".
Bernstein Securities analyst Trevor Stirling said the Australia business was a profitable cash cow, but an IPO without it could yield a higher valuation.
The bulk of the proceeds from the Australia deal will be used to reduce debt, AB InBev said, with the deal expected to close in the first quarter of 2020.
A week after pulling back from a planned IPO of its Asia-Pacific operations, Anheuser-Busch InBev announced today an $11.3 billion deal to sell its Australian subsidiary, Carlton & United Breweries, to Asahi Group Holdings. AB InBev's net debt totaled $102.5 billion at the end of 2018 and its net debt to core profit ratio was at 4.6 times. AB InBev shares rose as much as 5.6 per cent, the steepest gain in nearly five months. Rothschild & Co. advised Asahi.
AB InBev signaled Friday that it could return with a plan to sell Budweiser Brewing Co.
When acquiring SABMiller in 2016, a deal that gave the Belgian company control over one-third of the world's beer, AB InBev submitted five incremental offers until shareholders finally agreed to a takeover. The pricing of its shelved IPO had applied a multiple of 16-18 times for the Asian business.
Recommended News
-
20 July 2019We've Got So Many Leaders - Jurgen Klopp
We are not the best team in Europe, but we won the competition so yes we are the best team. And these are the fruits of their labour: Liverpool's 50 most recent signings.
20 July 2019Bernie Sanders' Staff Demands $15 Per Hour Minimum Wage
Sanders and Shakir "both strongly believe in the sanctity of the collective bargaining process", he added. Elizabeth Warren, D-Mass., and former Housing and Urban Development Secretary Julián Castro.
20 July 2019‘The Lion King’ sticks to its roots but loses original emotion
Movies like Avengers Endgame and Spider-Man: Far From Home were also leaked online hours after their official release. With this caliber of technology, talent and story, " The Lion King " remake should be more than a flashy copycat. -
20 July 2019Prosecutor Details How Ramaphosa Misled Parliament Over R500,000 Donation
The party is looking to address the matter in parliament and has already written to the speaker. The question was posed to him by Musi Maimane, leader of the opposition Democratic Alliance.
20 July 2019Kosovo’s PM Haradinaj resigns after being called to Hague war crimes court
Haradinaj was a Kosovo Liberation Army officer in 1998-99 during the armed conflict in the territory with Serbian forces. Mr Haradinaj, who denies war crimes charges, has been tried and acquitted twice at the United Nations tribunal.
20 July 2019Convicted Murderer Deemed Too Old to Kill Stabs Woman
In 2010, after being released yet again, he assaulted another woman and was incarcerated, according to The Washington Post . Albert Flick, 77, was sentenced to 25 years in prison in 1979 after stabbing his wife 14 times in front of their daughter. -
20 July 2019Elderly Native Hawaiians arrested in protest against telescope construction
On Monday, Hawaii state officials attempted to close the road to the summit so that construction could begin. Over the years, activists have staged protests and filed lawsuits to halt the telescope's construction.
20 July 2019Residential real estate drops 36%
Chinese economic growth also slowed to 6.3% in 2019 compared with 6.9% in 2017, helping to precipitate the constriction of cash. The data include foreigners who reside outside the United States and those who are recent immigrants or temporary visa holders.
20 July 2019House Democratss, GOP unite to repeal Obama health care tax
Some health economists warned that repealing the tax would remove one of Obamacare's main tools for lowering health care spending. Joe Courtney , Connecticut Democrat and the bill's sponsor. -
20 July 2019Scientists Print Magnetic Liquid Droplets
This is what the team chose to use for their nanoparticle suspension, printing droplets just one millimetre in diameter. Magnets are widely used today for all sorts of scenarios from medical devices to storing data inside computers.
20 July 2019Dear White People Drags Netflix in the Season 3 Trailer
Everyone's acting so different from the traits they previously established, ' one character commented as the preview kicked off.
20 July 2019Holding could captain Arsenal with Koscielny exit
We have to work well together on the pitch, out of the pitch and we have to work together, all of the players. Emery wants to ensure that one of his captains is English, however, which could open the door for Holding.
