|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||98.94 - 100.05|
|52 Week Range||74.28 - 100.90|
|Beta (3Y Monthly)||0.64|
|PE Ratio (TTM)||29.97|
|Earnings Date||Jul 29, 2019|
|Forward Dividend & Yield||1.60 (1.61%)|
|1y Target Est||92.35|
(Bloomberg) -- For months, executives from Anheuser-Busch InBev NV raced to prepare for a listing of its Asian subsidiary, Budweiser Brewing Company APAC Ltd. It was to be this year’s biggest initial public offering and would surpass Uber Technologies Inc.’s $8.1 billion share sale.The hope had been that the Belgian company’s leading position in the premium beer market in China -- with its millions of drinkers -- would justify a target to raise as much as $9.8 billion, for a valuation of $64 billion. But on Friday, AB InBev discovered that wasn’t enough to convince investors to splurge on the King of Beers, forcing it to dial back its ambitions and shelve plans for the mammoth IPO in Hong Kong.AB InBev’s setback can be explained at least partly by shifting trends in China, where younger consumers are increasingly moving away from traditional beers toward higher-priced craft brews and cocktails. Meanwhile, competition in China is spiking after rival Heineken NV forged a blockbuster deal with a state-owned company. All that left many investors wary of buying into Budweiser’s richly valued IPO.“We do feel that there are better places to be invested within beer, such as Carlsberg or Heineken,” Jefferies International analyst Ed Mundy told Bloomberg Television on July 12 before the company announced the suspension of the listing. Jefferies had estimated a valuation of closer to $45 billion.AB InBev shares fell as much as 2.8% early Monday in Brussels. The stock has lost more than 12% over the past 12 months.In its statement Friday, the company said it wasn’t proceeding with the transaction partly due to “prevailing market conditions.” The company may explore options such as selling a minority stake in the Asian business, though there is no immediate plan for a deal, people familiar with the matter said. AB InBev declined to comment.Bold MoveFrom the beginning, investment banks appeared to be overly emboldened by the promise of Asia’s beer boom. Shortly after AB InBev requested proposals last Christmas, one adviser pitched a valuation of $70 billion to $80 billion, according to people familiar with the matter.Seeing the S&P 500 headed for a record high and the success of some IPOs in the U.S., the company and its lead bankers at JPMorgan Chase & Co. and Morgan Stanley decided to offer a bigger stake in the business and try to raise $8 billion to $10 billion, the people said. That’s up from earlier discussions about targeting $5 billion to $6 billion.In the run-up to the pricing of the IPO last week, it became clear that demand from institutional funds didn’t meet the company’s expectations, the people said.AB InBev then guided investors that it could price the sale at the low end of the marketed range of HK$40 to HK$47 a share. Hours before the announcement Friday afternoon in the U.S., advisers had considered cutting the IPO’s size and relaunching the offer in a bid to rescue the deal.However, with several funds pushing to lower the price and threatening to pull orders at the last minute, AB InBev had no choice but to suspend the IPO, the people said.Representatives for JPMorgan and Morgan Stanley declined to comment.Read: AB InBev’s Pricey Brew Was Too Rich for Investors: Nisha GopalanCutting DebtProceeds from the listing would have allowed Chief Executive Officer Carlos Brito to pay down part of AB InBev’s colossal borrowings. The brewer that owns Budweiser as well as Corona, Stella Artois and other brands is wrestling with more than $100 billion in debt, the majority of it taken on to finance its takeover of rival SABMiller Plc in 2016. Now Brito has to find other ways to manage that debt load.Read: AB InBev Seeks Plan B After Investors Bail on Year’s Biggest IPOThe CEO must also contend with rising pressures in the Chinese market, one of the brewer’s most important countries and one that is key for growth in Asia. Beer accounted for about 30% of China’s total alcohol sales in 2015 but Euromonitor expects that to fall below 26% by 2023.While AB InBev commands 43% of the premium market in China, that’s down from 47% in 2014, according to Euromonitor. At the same time, rival Carlsberg A/S increased its share from 9% to 14%.Carlsberg has moved into 32 Chinese cities over the years and it plans to add five more during 2019, according to Graham Fewkes, the company’s executive vice president for Asia.The brewer also markets Tuborg and super premium brands Grimbergen and 1664 Blanc in China. “Growth is going to come from selling higher price products to people that are a bit more curious about the beer they are drinking,” Fewkes said.Heineken in April completed a $3.1 billion investment in the parent of China Resources Beer Holdings Co., China’s top brewer, and is licensing its brand to the state-backed company on a long-term basis. That deal gave the Dutch company access to an enormous distribution network in urban and rural segments of the country, and it reported shipments grew more than 10% in China in the first quarter of the year.To counter a decline in its bigger volume brands, AB InBev has sought a foothold in the craft-beer market through the acquisition of Boxing Cat Brewery. Still, there are clear signs that competitors are chipping away at AB InBev’s dominance in the country’s pricier bars and restaurants.Zhou Xinyu, a 21-year-old student in Shanghai, likes to drink beer from Tokyo-based Asahi Group Holdings Ltd. with sushi. She ranks Budweiser behind Heineken and beer from China’s Tsingtao Brewery Co. Ltd. “Budweiser is the bitterest of the three,” she said.(Updates with share price.)\--With assistance from Manuel Baigorri, Jin Ye, Dinesh Nair and Ben Scent.To contact the reporters on this story: Thomas Buckley in London at email@example.com;Vinicy Chan in Hong Kong at firstname.lastname@example.org;Crystal Tse in Hong Kong at email@example.com;Bruce Einhorn in Hong Kong 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, ;Fion Li at email@example.com, Anjali Cordeiro, Kenneth WongFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Anheuser-Busch InBev NV blamed market conditions for its decision to pull what would have been the world’s biggest initial public offering this year. Yet the brewer should take at least some responsibility. This concoction was far too frothy for investors when Asian economies face an array of sobering realities.AB InBev said it will no longer proceed with the IPO of its Asia-Pacific business, Budweiser Brewing Company APAC Ltd., which had been aiming to raise as much as $9.8 billion in Hong Kong. The company’s American depositary receipts fell as much as 4.9% in New York before closing down 3% on Friday.The offering valued Budweiser Brewing between 15.5 times and 18.2 times earnings before interest, tax, depreciation and amortization – well above the multiples for Carlsberg A/S and Heineken NV, and a premium to shares of the parent. The price range of HK$40 to HK$47 ($5.11 to $6.01) a share would have resulted in a market capitalization of $54.2 billion to $63.7 billion.You can hardly blame investors for wanting to sit this one out. The U.S.-China trade war is at an impasse and the ripples are widening. Singapore, a bellwether for global trade, on Friday posted its sharpest growth decline since 2012. While the Federal Reserve has signaled that interest rate cuts are coming, which has buoyed U.S. stocks, that's also driving a wedge between the world’s biggest economy and the rest.This split is perhaps nowhere more apparent than the IPO market. Listings in the U.S. are on track for their best year since 2014. Hong Kong, the top destination last year, is languishing by comparison, after a series of high-profile bloopers including smartphone maker Xiaomi Corp. in July 2018 and food-delivery giant Meituan Dianping in September. As I’ve argued, reclaiming that crown will be an uphill battle; and now Hong Kong is facing competition from Shanghai for tech IPOs. Alibaba Group Holding Ltd.’s secondary listing plan is a ray of light – but this latest kerfuffle could dim any optimism.Against this dismal backdrop, it’s little wonder things went south. Yet it’s a mistake to overlook AB InBev’s own missteps. For one thing, the company marketed itself as a purveyor of high-end beer, taking cues from Chinese consumers’ growing taste for foreign brands and craft labels. Perhaps its price range doesn’t look so out of whack when you consider the country's brewers trade anywhere between 15 times and 21 times, according to Bloomberg data. Yet investors just weren't convinced that demand would hold up in a slowing economy. The company’s China pitch also ignored mature markets like South Korea and Australia, which make up around half of Budweiser Brewing’s Ebitda, according to Bernstein Research. Then there’s the fact that growing a brand in Asia's fragmented market is easier said than done. India, where whiskey is the traditional tipple of choice, and Southeast Asia could have been fertile ground for expansion. One argument for an Asia IPO was that Budweiser Brewing would benefit from local tie-ups. Would the Thai tycoon who owns Vietnam’s top brewer, Sabeco Trading Corp., or the magnate that controls the Philippines’ San Miguel Corp. really cede control to the Belgian brewer for a piece of the Hong Kong listing? I’m unconvinced.The fatal flaw, however, may have been AB InBev’s hubris. In deciding against a cornerstone investor tranche, the company eschewed a fixture of Hong Kong’s IPO market. It turns out investors really do like the comfort of big names that pledge to hold stock – even if the practice ties up a lot of liquidity. Had Budweiser’s listing succeeded, it would have been a win for market reform, too. With such a bubbly valuation, AB InBev may have thought its investors were wearing beer goggles. Whether the brewer can make a dent in that $103 billion net debt from its purchase of SABMiller looks a lot less certain after a cold shower and pot of black coffee.To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- There’s a staring contest going on between Anheuser-Busch InBev NV and investors in initial public offerings. At issue is the price of the jumbo IPO of the Belgian brewer’s Asian business. Unfortunately for AB InBev, investors have the harder gaze.The deal is struggling to get priced, and its arrangers may revise the terms, Bloomberg News reported Friday. This is going to be a tense weekend – Monday is the deadline for the shares to be sold.It’s not hard to see why there’s a standoff. AB InBev knows that Budweiser Brewing Company APAC Ltd is an attractive asset. With an approximate $60 billion market value, it could be a large, liquid stock. It has a unique expansion story with strong organic growth supplemented by likely M&A. Hence AB InBev set a very punchy price range.But to get big deals done you have to entice enough buyers. And investors have one advantage: Their need to buy is less than AB InBev’s necessity to sell.While one benefit of the deal is that the proceeds would bring down the giant brewer’s leverage, this is not the main upside. Raising $8 billion to $10 billion is only going to dent net debt that stood at $103 billion on Dec. 31 (almost 5 times trailing Ebitda).The real bonus for AB InBev – as Duncan Fox of Bloomberg Intelligence says – would be securing an acquisition currency to do deals in Asia without potentially taking its leverage back up again. Net debt hit 6.7 times Ebitda after the 2016 purchase of SABMiller.AB InBev isn’t the only European brewer seeking Asian growth. Heineken NV is breathing down its neck with a partnership with China Resources Beer Holdings Co. and Carlsberg A/S has a thirst for the region too. There will be a real opportunity cost in failing to get the IPO away if AB InBev’s rivals are able to outbid it for attractive assets in the coming year.Of course, AB InBev isn’t totally constrained. It could yet turn to bond investors to fund further M&A. The debt markets are favorable – some of the Belgian company’s bonds are yielding even less than 1%. Still, gearing up is an unattractive option when leverage is already high.The number of global IPOs surged in the last three months, including in Asia, so it would look odd if this one doesn’t make it. Meanwhile, the brewer’s Asian staff expect to become part of a new separate company. Failure to get the deal done won’t help morale. Taken together, this puts the onus on AB InBev to get plan A away and secure the acquisition currency rather than fighting over the last cent of value here. And investors know it.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Heineken’s pubs business, Star Pubs & Bars, is being investigated by the UK industry watchdog over suspicions it forced some tenants to buy Heineken beers. Paul Newby, the Pubs Code Adjudicator, said that he had “reasonable grounds” to suspect that between 2016 and 2019, Star Pubs had gone beyond the limits set out in the UK pubs code for how much of its beer pubs were obliged to stock. It is also under investigation for specifying the price of those beers, which the PCA said may have resulted in higher prices for customers.
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Moody's Investors Service ("Moody's") has today affirmed Heineken N.V.'s ("Heineken" or "the company") Baa1 long-term issuer rating, Baa1 senior unsecured rating, (P)Baa1 senior unsecured MTN programme rating and Prime-2 (P-2) short-term issuer rating.
Investors seeking to preserve capital in a volatile environment might consider large-cap stocks such as Heineken N.V...
Ambev SA said on Wednesday it has signed contracts with four partners to build solar plants in Brazil that will supply clean energy to all of the brewing company's 94 distribution centers in the country by the end of March 2020. The move is part of a global effort by parent company Anheuser Busch InBev to have all of its operations run by renewable energy sources by 2025, and follows previous sustainability initiatives. Ambev, Latin America's largest brewer, in August said it had agreed to add 1,600 Volkswagen electric trucks to its logistics operators' fleet in Brazil by 2023.
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KLP, Norway's largest pension fund, will no longer invest in gambling companies and alcohol makers, and recently sold stocks and bonds in such firms worth some $320 million, it said on Tuesday. The decision ...
If you want to know who really controls Heineken N.V. (AMS:HEIA), then you'll have to look at the makeup of its share...
OTCQX: HEINY) announces that it has acquired a majority stake in Biela y Bebidas del Ecuador S.A. BIELESA ('BIELA ECUADOR') from a group of mainly local investors. Over the past few years, BIELA ECUADOR has established its place in the Ecuadorian beer market by re-launching the Biela® brand. The BIELA brewery is located in Guayaquil, Ecuador's largest city, and is fully operational using high-quality brewing and packaging equipment.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Today we will run through one way of estimating the intrinsic value of Heineken N.V. (AMS:HEIA...
Amsterdam, 30 April 2019 - Heineken N.V. ('HEINEKEN') (EURONEXT: HEIA; OTCQX: HEINY) today announced that on 29 April 2019 it completed all transactions to form the long-term,.
Rwanda's biggest brewer, Bralirwa Ltd, said on Friday pretax profit rose 33 percent to 10.3 billion Rwandan francs ($11.39 million) in 2018, boosted by sales of its premium brand Mutzig. The rise in sales of premium beer at the beverage company, a subsidiary of Heineken N.V., came as overall sales volumes rose by 14.6 percent to 1.790 million hectolitres in 2018, it said.
Amsterdam, 25 April 2019 - Heineken N.V. (HEINEKEN) announced today that its Annual General Meeting of Shareholders (AGM) has adopted all proposals on the agenda of the AGM. The.
Amsterdam, 24 April 2019 - Heineken N.V. (EURONEXT: HEIA; OTCQX: HEINY) today publishes its trading update for the first quarter of 2019. KEY HIGHLIGHTS Beer volume +4.3% organically, with growth in all ...
Stock pickers are generally looking for stocks that will outperform the broader market. Buying under-rated businesses is one path to excess returns. To wit, the Heineken share price has climbed 84% in five years, easily...