As part of the deal, SABMiller has agreed to sell its 58 per cent stake in the MillerCoors LLC joint venture to its partner Molson Coors Brewing Co, which holds the remaining 42 per cent, for $US12 billion.
Advertisement
Molson Coors expects the deal to add approximately $4.7 billion in incremental revenue and more than $1.0 billion in incremental EBITDA on a pro forma basis. Also, Director Andrew Thomas Molson sold 1,500 shares of the stock in a transaction on Thursday, August 13th.
AB InBev said it meant to seek a secondary listing of its ordinary shares on the JSE as soon as reasonably practicable after the date of the announcement.
The two companies said last week that they had made good progress in agreeing terms and AB InBev had entered into the funding facilities, but still needed a further week to finalise discussions and satisfy pre-conditions.
Molson Coors Brewing Company (NYSE:TAP) has shown a drop of 17.8% or 920,225 shares in the short positions.
The share-and-cash offer has been designed specifically so that the FTSE 100 company’s two biggest shareholders, tobacco company Altria and Colombia’s Santo Domingo family, can avoid a huge tax bill.
The $10 billion-plus sale would remove the main regulatory threat to a deal.
The new brewing giant will combine AB InBev’s Budweiser, Stella Artois and Corona brands with SABMiller’s Peroni, Grolsch and Pilsner Urquell and brew nearly a third of the world’s beer, dwarfing major competitors such as Heineken and Carlsberg. By pooling our resources, we would build one of the world’s leading consumer products companies. On the day of the agreement in principle it was worth £39.03 but AB InBev stock has since rallied, taking the value of the unlisted stock and cash offer close to the £44 value of the all-cash offer.
Additionally, Molson Coors would gain Miller brands such as Miller High Life, Miller Lite and Miller Genuine Draft.
Advertisement
“Our combination with SABMiller is about creating the first truly global beer company and bringing more choices to beer drinkers in markets outside of the United States”, said Carlos Brito, chief executive of AB InBev.
