AB InBev soars on news of its Asian listing

AB InBev’s share price jumped 8% to R1,045.79 after Bloomberg reported it was considering listing its Asian operations separately.

Its shares jumped the most since 2015 after people with knowledge of the matter said it was considering an initial public offering of its Asian operations, as the world’s largest brewer looks at ways to unlock value after a string of acquisitions left it saddled with debt.

The Belgium-based maker of Budweiser has been talking with potential advisers about the possibility of listing its Asian business. Any deal could raise more than $5bn (R69bn), the people said, asking not to be identified as the information is private.

AB InBev may seek to value its entire Asian business at about $70bn (R968bn) through the share sale, the people said.

It has not chosen a listing venue, though Hong Kong is a possibility, they said.

Deliberations are at an early stage and AB InBev could opt against pursuing a transaction, according to the sources.

The world’s largest brewer has been looking to reduce borrowings following its purchase of SABMiller for more than $100bn (R1.3-trillion) in 2016.

AB InBev shares fell 38% in 2018, making it one of the worst performers on the Euro Stoxx 50 index of European blue chips.

“We are always looking at opportunities to optimise our business and drive long-term growth, of course, subject to our strict financial discipline,” a representative for AB InBev said, declining to comment on specific deals.

“We are committed to our businesses in the Asia Pacific region and excited about the potential in this geography.”

Investors have been questioning AB InBev’s strategy after its third-quarter results missed expectations and the company halved its dividend.

Asia Pacific contributed $2.3bn (R33bn) of AB InBev’s revenue in the quarter ended September 30, according to Bloomberg data.