Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Stock Exchange of Hong Kong  >  China Resources Beer Holdings Co Ltd    0291   HK0291001490

CHINA RESOURCES BEER HOLDINGS CO LTD

(0291)
  Report  
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

AB InBev considers partial IPO of Asian business -bankers

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/12/2019 | 05:40am EDT
FILE PHOTO: Stella Artois bottles

BRUSSELS/HONG KONG (Reuters) - Anheuser-Busch InBev, the world's largest brewer, is considering raising billions of dollars in a partial flotation of its Asian operations, two Asian banking sources said, in a deal that would help to ease its debt burden.

The Belgium-based maker of Budweiser, Corona and Stella Artois has been discussing a possible multibillion-dollar listing in Hong Kong, one banker said on Friday.

AB InBev declined to comment on the matter.

"In line with our culture, we always look at opportunities to optimise our business and drive long-term growth and we are very committed to our business in the Asia-Pacific region and excited about the potential of this geography," an AB InBev spokeswoman said.

Bloomberg reported on Friday that AB InBev was considering an initial public offering (IPO) that could raise more than $5 billion, with the whole of the Asian business valued at about $70 billion.

A second banker contacted by Reuters envisaged a flotation worth $2-3 billion.

AB InBev shares, which fell by 38 percent last year, closed up 3.7 percent on Friday and were among the strongest risers on the FTSEurofirst 300 index <.FTEU3> of leading European stocks.

The company, which paid about $100 billion for nearest rival SABMiller in 2016, announced in October that it would be cutting its proposed dividend in half after beer sales fell in its largest markets of the United States and Brazil.

AB InBev is targeting a return to a net debt to EBITDA ratio of two times. Trevor Stirling, analyst at Bernstein Research, estimated that this multiple was 4.7 at the end of 2018 and would fall to 4.3 at the end of 2019 and 3.7 at the end of 2020.

The company on Thursday priced a $15.5 billion six-part bond, the largest in the investment grade space since early October, and also tendered to buy back up to $16.5 billion of notes maturing between 2021 and 2026.

INSURANCE POLICY

Analysts said the $70 billion valuation - about half the market capitalisation of the whole company - appeared excessive.

At the nine-month mark in 2018 the Asia-Pacific region accounted for 20 percent of group volumes and 15 percent of AB InBev's underlying profit.

Broker RBC Europe noted that a subsidiary partially owned by a minority was nothing new, given that it owned 62 percent of Brazilian brewer Ambev, but added that it was "bemused" by the valuation figures.

"This takes a bit off the gloss of the headlines and share price reaction in our view. But nonetheless we regard it as a positive development insomuch as it allays some concerns about AB InBev's indebtedness," the broker said.

Beyond debt reduction, Chinese brewers, such as Chinese Resources Beer Holdings Co, trade at higher multiples than AB InBev, so a separate listing of its Asian operations could unlock value.

About a third of AB InBev's Asia-Pacific profits come from China, with the rest mostly from Australia.

"It's also an insurance policy," said Stirling. "If you ever did run into serious problems on the Brazilian real or the Mexican peso, then all you have to do is sell off another 10-15 percent and pay off a bit more debt."

Analysts at Jefferies said that accelerated debt reduction could also open the way for AB InBev to carry out further acquisitions, with privately held French group Castel among potential targets.

(Reporting by Philip Blenkinsop in Brussels and Julia Fioretti in Hong Kong, additional reporting by Martinne Geller in London; Editing by Alastair Macdonald, Kirsten Donovan and David Goodman)

By Philip Blenkinsop and Julia Fioretti

Stocks mentioned in the article
ChangeLast1st jan.
AMBEV SA 0.27% 18.25 End-of-day quote.18.66%
ANHEUSER-BUSCH INBEV 0.11% 78.59 Delayed Quote.35.94%
CHINA RESOURCES BEER HOLDINGS CO LTD 2.37% 36.65 End-of-day quote.34.74%
EURO / BRAZILIAN REAL (EUR/BRL) -0.14% 4.2178 Delayed Quote.-5.01%
EURO / MEXICAN PESO (EUR/MXN) 0.09% 21.3782 Delayed Quote.-5.00%
VALUE8 -1.43% 5.5 Delayed Quote.17.72%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CHINA RESOURCES BEER HOLDI
07/15HOLD THE BEERS : Budweiser APAC IPO hit by investor push-back
RE
07/15HOLD THE BEERS : Budweiser APAC IPO hit by investor push-back
RE
07/11CHINA RESOURCES BEER : "List of Directors and their Role and Function"
PU
05/28CHINA RESOURCES BEER HOLDINGS CO LTD : Ex-dividend day for final dividend
FA
04/12China's CIMC set to expand global reach
AQ
03/28CHINA RESOURCES BEER : brewer Tsingtao annual profit rises 12.6 percent, matches..
RE
03/20CHINA RESOURCES BEER : 2018 Final Results Announcement
PU
03/15CHINA RESOURCES BEER HOLDINGS CO LTD : annual earnings release
01/12AB InBev considers partial IPO of Asian business -bankers
RE
2018CHINA RESOURCES BEER : Res Beer adopts dividend policy
AQ
More news
Financials (HKD)
Sales 2019 38 991 M
EBIT 2019 3 345 M
Net income 2019 2 226 M
Finance 2019 2 492 M
Yield 2019 0,70%
P/E ratio 2019 52,4x
P/E ratio 2020 35,2x
EV / Sales2019 2,99x
EV / Sales2020 2,74x
Capitalization 119 B
Chart CHINA RESOURCES BEER HOLDINGS CO LTD
Duration : Period :
China Resources Beer Holdings Co Ltd Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CHINA RESOURCES BEER HOLDI
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 34,97  HKD
Last Close Price 36,65  HKD
Spread / Highest target 23,4%
Spread / Average Target -4,59%
Spread / Lowest Target -37,2%
EPS Revisions
Managers
NameTitle
Xiao Hai Hou Chief Executive Officer & Executive Director
Lang Chen Chairman
Po Sing Lai CFO, Secretary & Executive Director
Kwing Chue Siu Independent Non-Executive Director
Ni Hium Lai Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
CHINA RESOURCES BEER HOLDINGS CO LTD34.74%15 347
ANHEUSER-BUSCH INBEV35.94%176 060
AMBEV SA18.66%78 217
HEINEKEN28.52%63 560
ASAHI GROUP HOLDINGS LTD20.91%21 151
CARLSBERG A/S30.06%20 481