Comprehensive M&A data with integrated detailed company information
AB InBev’s Asia Pacific arm hops to it, files to list in Hong Kong
Posted on Friday, 10 May 2019 09:49
Months of speculation have culminated in Anheuser-Busch (AB) InBev’s Budweiser Brewing Company APAC (Budweiser APAC) submitting an application to list a minority stake on the Hong Kong Stock Exchange.
The heavily redacted prospectus shows the subsidiary was officially incorporated in the Cayman Islands in April 2019 to act as the holding company of the beverage giant’s operations based in China, Australia, India, Vietnam and South Korea.
Billed as the largest beer company in Asia Pacific by retail sales value in 2018, Budweiser APAC produces, imports, markets, distributes and sells a portfolio of over owned and licensed 50 brands.
Global banners comprise the likes of Budweiser, Stella Artois and Corona and local ones include Hoegaarden, Harbin and Victoria Bitter.
Budweiser APAC is also one of the most profitable players in the region in terms of normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 2.79 billion 12 months to 31st December 2018 (FY USD 2.48 billion).
The group booked FY 2018 revenue of USD 8.46 billion (FY 2017: USD 7.79 billion) and profit attributable to equity holders totalled USD 1.41 billion (FY 2017: USD 1.08 billion).
Goodwill amounted to USD 13.20 billion and intangible assets amounted to USD 4.40 billion at year-end and it had a multiple of 0.3x net debt to normalised EBITDA.
According to the prospectus, Asia Pacific is the largest beer consumption region by volume and value in 2018, accounting for 37.0 per cent of the worldwide sector, compared to 25.2 per cent for Europe.
By far and away, China is the biggest beer market globally by volume and value with a share of 66.0 per cent and 41.0 per cent, respectively, in 2018.
It has transitioned from a highly fragmented sector to a relatively consolidated one led by five brewers, namely CR Snow, Tsingtao, Budweiser, Yanjing and Carlsberg, based on volume.
© Zephus Ltd