The Largest IPO of 2019 Is Coming from AB InBev

Discussion in 'Beer News & Releases' started by Todd, Jul 7, 2019.

  1. Todd

    Todd Founder (5,982) Aug 23, 1996 California
    Staff Moderator Fest Crew Society

    https://www.forbes.com/sites/kennyg...st-ipo-of-2019-is-coming-from-a-beer-company/
     
    Roguer likes this.
  2. slangtruth

    slangtruth Initiate (122) Jan 8, 2012 Kentucky

    You can't go wrong betting on beer.
     
  3. StoutElk_92

    StoutElk_92 Poo-Bah (2,243) Oct 30, 2015 Massachusetts

    $100 billion debt? They’re almost as bad as our government.
     
  4. islay

    islay Aspirant (289) Jan 6, 2008 Minnesota
    Trader

    Much of that debt was to finance the SABMiller acquisition in 2016. Standard M&A stuff (strategic debt), nothing to be alarmed about in its own right. "The Brazilians" who run InBev by all accounts have trimmed a lot of the fat since they bought Anheuser-Busch.
     
  5. readyski

    readyski Aspirant (249) Jun 4, 2005 California
    Trader

    100 $billion debt, that gotta be 5-10 bill annual interest at least. Good god that would solve some problems domestic and foreign - oh yeah it's beer, it is solving problems.
     
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  6. FatBoyGotSwagger

    FatBoyGotSwagger Meyvn (1,365) Apr 4, 2009 Pennsylvania

    I read about this earlier this week from another source and from what I read the initial offering will be sold to large private sources and whatever is left may be sold to the public
     
  7. Todd

    Todd Founder (5,982) Aug 23, 1996 California
    Staff Moderator Fest Crew Society

    Anheuser-Busch InBev calls off Asia unit IPO
    https://www.marketwatch.com/story/anheuser-busch-inbev-calls-off-asia-unit-ipo-2019-07-12

    And Barron's reported that AB InBev shares were down today.
     
  8. FatBoyGotSwagger

    FatBoyGotSwagger Meyvn (1,365) Apr 4, 2009 Pennsylvania

  9. spicoli00

    spicoli00 Defender (612) Jul 6, 2005 Indiana

    Meh, 5.2x leverage isn't terrible. Their S&P credit rating is A- which is one of the highest investor grades, although they are on credit watch.

    More like $4.5B for the last twelve months through March 2019.:wink:
     
    readyski likes this.
  10. Crusader

    Crusader Aspirant (288) Feb 4, 2011 Sweden

    Interesting. Asahi is buying up western assets left and right it seems. From what I understand the Australian market is a market in decline much like most of the west and I imagine that CUB wasn't what made ABInbev want to buy SABMiller in the first place, they were more likely after their position in emerging markets. But Asahi goes out and gets these brewing companies in mature markets, that's quite the different way of going about things. Maybe they still have faith in being able to leverage strong brands for marketshare gains in these mature yet also more profitable markets.

    Then again, as they themselves surely want to join the race for premiumization in the emerging markets I guess it doesn't hurt to have a stable of large brands of their own to use for this purpose.
     
    #10 Crusader, Jul 19, 2019
    Last edited: Jul 19, 2019
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  11. jesskidden

    jesskidden Poo-Bah (1,853) Aug 10, 2005 New Jersey
    Society Trader

    From the above:
    This doesn't sound right at all - though, granted, can't say I've followed the Australian industry closely (not helped by many name changes, buy-outs and spinoffs). By the 1980s CUB and Foster's were both owned by Elders IXL. Elders went on to buy Courage in the UK and Carling in Canada but eventually left the brewing industry. At one point, Asahi even owned a large but minority portion of Elders/Fosters.

    Also, by 2011, SABMiller was based in London, having left South Africa in the late 1990s, a few years before buying Miller, IIRC.
     
  12. jesskidden

    jesskidden Poo-Bah (1,853) Aug 10, 2005 New Jersey
    Society Trader

    Yeah, most estimates put Asahi at #7 worldwide (post-SABMiller/AB merger and the subsequent sale of the central European and other breweries to Asahi) but it doesn't look like the CUB barrelage (hectoliterage? :wink:) will bump them up enough to pass #6 Tsingtao.
     
    Crusader likes this.