The biggest brewer in the world is AB InBev or Anheuser-Busch InBev and one of the methods they became the biggest is through easy credit. In late 2016 the company paid $100 billion for SABMiller, the debt is still on the books and one method to reduce debt is still a piece of equity.
The Asia Pacific business should raise just under $10 billion through the sale of 1.6 billion primary shares. According to the article by Alun John and Sumeet Chatterjee the pricing is expected to be between 40 and 47 Hong Kong dollars or $6.72 and 7.90. The pricing vales Budweiser Asia at 16 to 18 times its enterprise vale to EBITDA.
Linking to dividend paying stocks, billion dollar takeovers are sexy and make wonderful copy, but they come with paying down the debt. You will hear at cost cutting, potential savings but you will need you need to ask is growth enough or should I look for alternatives and come back in a year or 2?
Postcript the ipo is on the shelf for now.
There are more questions than answers, till the next time – to raising questions.