Budweiser owner AB InBev ‘exploring’ Hong Kong IPO of Asian business

Budweiser owner Anheuser-Busch InBev (AB InBev) is exploring a public listing of its Asian business in Hong Kong, the drinks giant confirmed this morning as it reported its results for the first quarter of the year.

The figures

Revenue was up 5.9 per cent to to $12.85bn and earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 8.2 per cent in the first quarter to $4.99bn, which is slightly lower than analyst expectations of $5.06bn.

The brewer, which also owns Stella Artois and Corona, said earnings per share was $1.80.

The growth was driven by performance in key markets such as Brazil, China, the US, Europe, Colombia and Nigeria, although the success was offset by results in South Africa and Argentina.

Why it’s interesting

The company announced it was exploring a minority listing of its Asia Pacific business to create a “champion in the consumer goods space”. The firm said its brand portfolio and position in the beer industry makes it an attractive platform for M&A in the region.

Reports earlier this year suggested that the listing could raise more than $5bn, with the company's total Asian business worth $70bn, however, sources told Reuters a flotation of between $2bn and $3bn was more realistic. 

What AB InBev said

“In addition, we are actively exploring a potential minority stake listing of our Asia Pacific (APAC) business on the Hong Kong Stock Exchange,” the firm said.

“Proceeding with a listing will depend on a number of factors, including, but not limited to, valuation and prevailing market conditions.

“The merits of this initiative are based upon the creation of an APAC champion in the consumer goods space.

“Furthermore, our superior portfolio of brands and leadership position in the beer industry provide an attractive platform for potential M&A in the region.”