AB InBev will sell Carlton & United Asahi Group (Japan). The amount of the transaction will be 11.3 billion US dollars. This data was published in the press release of the company.
The purchase price is 15 times higher than the department’s annual revenue. The money received will be spent on debt repayment, which is more than $ 100 billion. The debt was formed after the acquisition of SABMiller in 2016. Representatives of AB InBev noted that by the end of the next year the company wanted to ensure that the revenue was no more than 4 times less than the debt.
The expected closing date is the first quarter of 2020.
It also became known that the matter of the IPO of Budweiser APAC was still under consideration. AB InBev is ready to hold the IPO, but it is only possible if the company gets a good stock price.
In July, there was a message about the decision not to conduct an IPO. However, the explanations were not given. The company’s management were only limited to general phrases like “a market situation”. Meanwhile, the IPO could become the largest in history of the Hong Kong Stock Exchange. By the way, debt reduction was the main aim of the IPO. Analysts agree that weak demand from American investors became the main reason for the rejection of the idea.
Dow Jones has already reported on the idea to sell assets at the amount of 10 billion US dollars. Agency sources talked about manufacturing in South Korea, Australia and Central America. They have good profits and a large share in the segment. However, the sale of such assets would not have a negative effect on AB InBev. The reason for this is simple – the markets mentioned above are not fast growing.
Earlier, it was Dow Jones who spoke about the interest from Asahi Group. In May, a global investment firm KKR & Co contacted AB InBev to offer them asset purchases in the Asian region.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group