RICHMOND - Altria Group , Inc. (NYSE: NYSE:MO), a prominent tobacco company, has declared its plan to divest a portion of its investment in the global beer conglomerate Anheuser-Busch InBev SA/NA (NYSE: BUD).
The proposed transaction includes a secondary offering of ABI's ordinary shares, which will be made available through multiple channels, such as public offerings in the United States, a private placement in Europe and the UK, and offerings in other countries.
The company aims to sell 35 million ordinary shares out of its approximately 197 million shares, which account for roughly a 10% stake in ABI. Additionally, ABI has agreed to buy back $200 million worth of shares directly from Altria, contingent on the offering's completion.
Altria has also agreed to a 180-day lockup period for its remaining ABI shares with the lead underwriter and may grant underwriters an option to purchase up to an additional 5.25 million shares within 30 days post the offering's pricing.
The proceeds from this sale are intended to fund further share repurchases of Altria's common stock, though such repurchases are at the discretion of Altria's Board of Directors. Billy Gifford, Altria’s CEO, remarked on the transaction as a strategic move to capitalize on the long-term investment's substantial returns.
Morgan Stanley & Co (NYSE:MS). LLC and J.P. Morgan Securities LLC are acting as lead and active underwriters, respectively, for the offering. Before investing, prospective buyers are encouraged to review the prospectus and related documents filed with the U.S. Securities and Exchange Commission, which can be accessed for free on the SEC's EDGAR website.
This announcement is based on a press release statement and does not serve as an offer to sell or a solicitation of an offer to buy securities. The offering is subject to registration or qualification under the securities laws of any relevant jurisdiction.
The forward-looking statements in the press release are subject to various risks and uncertainties, and actual results may differ due to economic, market, or business conditions. Altria has specified that it does not undertake any obligation to update forward-looking statements beyond the date of the press release.
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