Budweiser Brewing Company APAC Limited announced the Group has granted the AB InBev Group exclusive licenses to import for sale, sell and distribute, and non-exclusive licenses to advertise and promote, the Group's products outside of Asia Pacific, pursuant to which the AB InBev Group will import the relevant products from the Group for sale outside of the APAC Territories (the Existing ABI Licences to Import). On 29 September 2023, the Company and AB InBev have entered into an amendment letter to the Importation Framework Agreement, pursuant to which the Existing ABI Licences to Import shall be expanded to cover both the Group's products and AB InBev Products. All other terms of the Importation Framework Agreement remain unchanged.

The licenses granted will be subject, in particular, to the terms of agreements between the Group and third parties existing as of the date of the Importation Framework Agreement and any limitations in the licenses granted to the Group. The respective Group member and AB InBev Group member shall enter into subsidiary agreements which will set out more specific terms and conditions based on the principles and terms of the Importation Framework Agreement. The subsidiary agreements will set out, among other terms, the licensee and licensor, license scope, territory, duration, import price, delivery and title transfer terms, payment and credit terms, and other license terms. As the 25-year term for the Amended ABI Licences to Import (with approximately 21 years remaining) exceeds three years, pursuant to Rule 14A.52 of the Listing Rules, the Company has appointed the Independent Financial Adviser to explain why the Amended ABI Licences to Import require a 25-year term and to confirm that it is normal business practice for agreements of this type to be of such duration.

In assessing the reasons why the duration of the Amended ABI Licenses should be longer than three years, the Independent Financial Adviser has relied on the information set out in this announcement, and has taken into account the following factors considered by the management of the Company: it is in the interests of the Group to secure purchasers of AB InBev Products and the Group's products for as long a term as it can negotiate in order to generate associated revenue and cash flows from the relevant sales; the 25-year term provides certainty, comfort and protection to the Company, AB InBev and AB InBev's distributors, enabling the parties to plan and invest over the longer term; and the 25-year term is in line with general practice of the industry and comparable contractual arrangements by fast moving consumer goods companies. In considering whether it is normal business practice for agreements of a similar nature to the Amended ABI Licenses to Import to have a term of such duration, the Independent Financial Adviser has identified a list of three similar transactions of listed fast-moving-consumer-goods companies on the Main Board of the Stock Exchange. Based on its research, the Independent Financial Adviser believes the comparable list is exhaustive.