Altria Group, Inc. (Altria) has announced its intent to sell a portion of its investment in Anheuser-Busch (ABI).
Altria currently holds approximately 197 million shares of ABI, representing approximately 10 per cent ownership. Altria, as the selling shareholder, is offering 35 million of ABI’s ordinary shares. In connection with the offering, Altria expects to grant the underwriters an option to purchase up to 5.25 million additional ABI shares owned by Altria, exercisable within 30 days following the pricing of the offering. In addition, Altria has agreed to a 180-day lockup with the lead underwriter for its remaining ABI shares.
Altria expects to use the proceeds for additional share repurchases of its common stock. Future share repurchases remain subject to the discretion of the Board of Directors (Board).
“As good stewards of shareholder capital, we consistently review options to unlock the value of our ABI investment, and we believe this is an opportunistic transaction that realizes a portion of the substantial return on our long-term investment,” said Billy Gifford, Altria’s Chief Executive Officer. “Over the decades of our ownership, the beer investment has provided significant income and cash returns and supported our strong balance sheet. Our continued investment reflects ongoing confidence in ABI’s long-term strategies, premium global brands and experienced management team.”
The offering and the partial sale of the investment in ABI have been approved by the Board.