|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||81.88 - 83.65|
|52 Week Range||56.32 - 91.14|
|Beta (3Y Monthly)||1.39|
|PE Ratio (TTM)||24.11|
|Earnings Date||Jul 25, 2019|
|Forward Dividend & Yield||2.00 (2.53%)|
|1y Target Est||99.21|
(Bloomberg) -- Anheuser-Busch InBev NV bounced back quickly from the failed initial public offering of its Asian unit, selling Australian beer assets in a deal valued at A$16 billion ($11.3 billion) and keeping alive the prospect of a share sale.The disposal of Foster’s and other brands to Asahi Group Holdings Ltd. less than a week after the IPO was pulled shows that the world’s largest brewer means business about cutting its $100 billion-plus debt pile. AB InBev shares rose as much as 5.6%, the steepest gain in almost five months. The bonds also climbed.The deal furthers Asahi’s overseas expansion as the domestic beer market languishes. The company plans to finance the deal with a share sale worth as much as 200 billion yen ($1.9 billion), subordinated bonds and a 1.2 trillion-yen bridge loan.By selling the Carlton & United unit, AB InBev removes a slow-growing part of its Asia-Pacific empire, potentially making any future IPO more attractive to investors who balked at the previous deal’s valuation. The company had aimed to raise as much as $9.8 billion in what would have been the year’s biggest initial offering.The IPO reversal and quick sale to Asahi follow AB InBev Chief Executive Officer Carlos Brito’s previous playbook. Throughout his tenure -- including the $106 billion purchase of rival SABMiller that cemented the brewer’s global dominance -- he has often met initial resistance to his dealmaking plans before achieving his main goals in the end.The so-called megabrew deal also saddled AB InBev with mammoth borrowings, which prompted the company to slash its dividend last year and to plan the aborted IPO. Standard & Poor’s has a negative outlook on the debt -- ranked A-, the fourth-lowest investment grade -- and analysts have raised the possibility of further disposals.Balance Sheet“While the stretched balance sheet appears to be leading to asset sales, we think the group is worth a lot more than is currently implied by the shares, especially as the company delevers,” wrote Nico von Stackelberg, an analyst at Liberum.AB InBev’s shares have risen 44% this year. Its 3 billion-euro ($3.4 billion) 2028 note added 0.3 cents to 112 cents on Friday, lifting it to the highest since September 2016, based on data compiled by Bloomberg.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. AB InBev then quickly moved to sell prized brands in Europe and China to satisfy antitrust concerns, which focused the business more on the emerging world.AB InBev signaled Friday that it could return with a plan to sell Budweiser Brewing Co. APAC. Potential investors will seek a more appealing valuation, after the former price range valued the unit at 28.5 times to 33.5 times consensus 2020 earnings, above the ratios for both Heineken NV and Carlsberg A/S.SABMiller DealThe Belgian company acquired Carlton & United through the purchase of SABMiller. The Budweiser maker still has a major presence in Asia, particularly in China, though it’s facing challenges there amid shifting trends. Younger consumers are moving away from traditional beers toward higher-priced craft brews and cocktails, while competition is spiking after rival Heineken forged a blockbuster deal with a state-owned company.Carlton & United, whose brands also include Victoria Bitter, accounts for almost half the beer market in Australia. While Foster’s is well known internationally as an Australian brew, it’s much less commonly consumed domestically than abroad. Heineken makes it in Europe under license.What Bloomberg Intelligence Says“Selling Carlton & United Breweries to Asahi for about $11.3 billion sheds a low-growth, high-margin asset, and allows for reinvestment into better growth markets.”Duncan Fox, consumer products analystClick here to read the pieceThe deal will give Asahi, known for is Super Dry lager, a major boost in Australia. It is already the company’s second-largest overseas market behind Europe, but its presence has been overshadowed by Carlton & United and Kirin Holdings Co.’s Lion, which combined account for a 90% share, according to research firm IBISWorld.In January, Asahi announced a $330 million purchase of the brewing business of Fuller, Smith & Turner Plc in the U.K. In 2016, it bought Peroni, Grolsch and Pilsner Urquell lagers from Anheuser-Busch and SABMiller in separate deals worth around $11 billion.Lazard and Freshfields advised AB InBev on the Carlton & United sale. Rothschild & Co. advised Asahi.(Updates with Asahi financing in third paragraph.)\--With assistance from Gearoid Reidy.To contact the reporters on this story: Lisa Du in Tokyo at email@example.com;Thomas Buckley in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Rachel Chang at email@example.com, ;Eric Pfanner at firstname.lastname@example.org, Thomas Mulier, John LauermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Anheuser-Busch InBev on Friday said it’s selling its Australian subsidiary for A$16 billion ($11.3 billion) just days after scrapping the initial public offering of its Asia business.
Anheuser-Busch InBev has agreed to sell its Australian operations to Japan’s Asahi for an enterprise value of $11.3bn, moving quickly to raise cash a week after an aborted initial public offering. The ...
Shares in Europe rose across the board on Friday as comments from a Federal Reserve official cemented the case for a U.S. interest rate cut this month, with brewer Anheuser-Busch InBev leading blue chip gains after moves to reduce its debt burden. Markets have fully priced in a 25 basis point cut by the Fed this month, but a batch of strong U.S. data recently had dimmed hopes of an aggressive cut and weakened the positive global mood that has driven stock markets higher since May. "The question is not that will a rate cut happen, but will the size of the cut itself will be 0.50 bps instead of 0.25 bps, because there is uncertainty over the size of what the interest rate cut will be at the upcoming Fed meeting," Spreadex analyst Connor Campbell said.
Anheuser-Busch InBev, the world's largest brewer, is selling its Australian operations to Japan's Asahi for $11 billion and could revive the stalled flotation of its Asian business as it looks to cut debt. The Belgium-based brewer, weighed down with debt after its 2016 acquisition of rival SABMiller, on Friday said it had agreed to sell Australian subsidiary Carlton & United Breweries (CUB) at an enterprise value of A$16 billion ($11.3 billion).
Microsoft rides cloud to record high, Fed officials trigger new rate cut hopes, Budweiser dumps Aussie assets, U.S. Navy down drown and Tiger looks his age at Royal Portrush.
Anheuser-Busch InBev shares traded near the top of the European market Friday after it agreed to sell its Australian division for around $11.3 billion less than a week after cancelling the Hong Kong listing of its Asian business that would have been the year's biggest IPO.
Shares of Anheuser-Busch InBev S.A. rose 1.2% in midday trading Thursday, after The Wall Street Journal reported that the Budweiser, Stella Artois and Corona beer brewer was exploring a sale of assets as it looks to reduce debt after calling off the initial public offering of its Asia-based business. Citing people familiar with the matter, the WSJ report said A-B InBev is considering selling assets in South Korea, Australia and Central America. In May, private-equity firm KKR & Co. had approached A-B InBev about buying back some of the Asia-based assets, the WSJ report said, as KKR had previously bought the Korean business and sold it back to A-B InBev for $5.8 billion in 2014. A-B InBev's stock has rallied 36% year to date, while the S&P 500 has gained 19%.
Brewer mulls sale of its South Korean, Australian and Central American units in an effort to cut debt, WSJ reports.
If completed, they would help speed deleveraging at the world’s biggest brewer, the home of brands including Budweiser, Stella Artois, Leffe and Brahma. AB InBev can also pay down debt simply from the cash generated from selling one of every four beers drunk worldwide.
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For Anheuser-Busch InBev’s deal-hungry chief executive Carlos Brito, the initial public offering of its Asian business held out a beguiling prospect. The almost $10bn that the world’s biggest brewer hoped to raise would help foot some of the bill for a decade-long acquisition spree.
The market just didn't agree with the valuation the giant brewer tried to put on its Asia Pacific unit, Budweiser Brewing Company APAC.
St. Louis companies continue to be buyers in the mergers and acquisitions market. Of 98 transactions in the first half of 2019, 61 were acquisitions by St. Louis companies, and 37 were sales by St. Louis companies, according to The Fortune Group, an M&A advisory firm. It’s a trend that goes back 10 years and is in contrast to the negative trend – and image – of large public companies headquartered in St. Louis relocating or selling to companies with headquarters elsewhere.
A senior Goldman Sachs banker has highlighted to colleagues the role played by rival Morgan Stanley in failed Hong Kong IPOs following the collapse on Friday of Budweiser APAC's $9.8 billion initial public offering, according to an internal email seen by Reuters. On Friday AB InBev called off the Hong Kong listing of its Asia Pacific brewing business, that was being managed by Morgan Stanley and JPMorgan, citing several factors, including prevailing market conditions. A further 11 banks were listed as global coordinators and bookrunners but Goldman had no role on the deal.
Budweiser's parent company was on track to hold the title of overseeing the world's most valuable IPO in 2019. The now-cancelled IPO was poised to raise $10 billion through a listing in the Hong Kong market. It appears the company and its bankers were too aggressive in pricing the IPO, although its exposure to China yields superior margins compared to rivals, The Wall Street Journal reported.
AB InBev's cancelled Asian stock market listing will slow but not derail the world's largest brewer's efforts to cut its debt mountain, delaying future acquisitions and prioritising its main challenge - selling more beers. The Belgium-based company on Friday shelved plans to list its Asian Pacific business in Hong Kong in what would have been the world's biggest initial public offering so far this year. The brewer has said that even without the flotation of a minority stake in the Asian division Budweiser APAC it will reduce its net debt to core earnings (EBITDA) ratio to below four times by the end of 2020 - from 4.6 at the end of 2018.
Guggenheim’s Laurent Grandet said that every other major catalyst is intact for AB InBev, making last week’s weakness a buying opportunity.
Jul.15 -- Ringo Choi, IPO leader at EY Asia Pacific, discusses the IPO market in Asia, how the listing failure of AB InBev will impact future offerings and Alibaba’s upcoming IPO. He speaks on “Bloomberg Markets: China Open.”