Apollo Global Management Inc has said that a group of institutional investors led by the private-equity firm will buy a 49.9% stake in Anheuser-Busch InBev's (AB InBev) US-based metal container plants for approximately $3 billion.
AB InBev has been burdened by debt after its 2016 takeover of nearest rival SABMiller and has made deleveraging a priority, selling its Australian operations and even trying to launch an initial public offering (IPO) in Hong Kong for its Asia operations.
AB InBev said separately that the deal will allow it to generate proceeds to repay debt and create shareholder value, and added that it will retain operational control of the plants.
The world's largest brewer said that it has signed a long-term supply agreement for meeting its can needs over the duration of the deal with Apollo.
AB InBev will have the right, but not the obligation, to reacquire the minority stake after five years from the close of the transaction, the company said, adding that it expects the deal to close by January 8.
Drinking At Home Pushes Up Costs
In October, the maker of Budweiser, Stella Artois and Corona lagers scrapped its interim dividend and said that its quarterly profits dipped as the shift to drinking at home pushed up its costs.
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