Australia brewery sale puts shine on Budweiser Brewing HK float

Business | 19 Jul 2019 5:27 pm

Selling down slower-growth assets like Australia should make the Asia Pacific IPO much more interesting to investors given the reduced mix of slower growth, mature-market beer assets,” says  Nico von Stackelberg, an analyst at Liberum, Bloomberg reports.

He was responding to AB InBev announcement  today that the Hong Kong IPO of Budweiser Brewing Co. APAC would still be strategic, provided it could achieve the right valuation.

Budweiser Brewin offered to sell about 1.6 billion primary shares at between HK$40 and HK$47 per share in Hong Kong to raise between US$8.3 billion and US$9.8 billion. But it pulled the IPO last week. It was to begin trading today.

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 rising after rival Heineken forged a blockbuster deal with a state-owned company.

“Selling Carlton & United Breweries to Asahi for about US$11.3 billion sheds a low-growth, high-margin asset, and allows for reinvestment into better growth markets,” Duncan Fox, consumer products analyst.-Bloomberg/The Standard 

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