Posted on 03/17/2024 7:24:08 AM PDT by T.B. Yoits
Altria is selling off part of its 10% stake in Anheuser-Busch InBev, valued at about $2.2 billion.
The tobacco giant said it would use the proceeds to purchase its own shares.
Anheuser-Busch InBev has been hurt by the loss of Bud Light sales related to the boycott over the beer maker's relationship with transgender influencer Dylan Mulvaney.
American Depositary Receipts (ADRs) of Anheuser-Busch InBev (BUD) slumped more than 5% Thursday after Altria (MO) slashed part of its 10% stake in the beer maker at a discounted price.
Altria announced that it would be selling 35 million of its 195 million ABI shares—AB InBev shares traded on the Euronext exchange—through a global secondary offering. The tobacco giant explained that the sale would be composed of public offerings of ADRs and ABI ordinary shares in the U.S., as well as a concurrent private placement of ABI ordinary shares in the European Economic Area and the U.K.
AB InBev explained the shares would be priced at EUR56.17 ($61.26) per ordinary share, and $61.50 per ADR. That would be about 5% below Wednesday's closing price in the U.S. of $64.55. The beer maker added that it plans to buy 3.34 million ordinary shares for $200 million.2
The move would raise about $2.2 billion for Altria. The company noted that it expects to use the cash generated to buy back its own shares.
A year ago, AB InBev shares plunged after a boycott of its Bud Light brand sparked by the company's work with transgender influencer Dylan Mulvaney. Soon thereafter, Bud Light lost its title as best-selling U.S. beer brand to Constellation Brands’ (STZ) Modelo Especial. Sales of Bud Light have yet to recover, although AB InBev’s overall revenue in 2023 was up 7.8%.
(Excerpt) Read more at investopedia.com ...
Altria had received 185 million shares in AB InBev back in October 2016 when SABMiller was acquired by AB InBev since Altria had a stake in SABMiller. Altria purchased 12 million more shares the same month, taking its holdings in AB InBev to 197 million. At the time, AB InBev stock was valued at $127 per share (197M shares at $127 per share = $25B).
The stock is now trading at roughly $62 per share.
Don't let anyone tell you boycotts don't work (yes, I know, this isn't a boycott, it's a complete walking-away). Transheuser-Busch spit in the faces of their customers in order to push perversion. One can now better understand the desperation of Transheuser Busch trying to pay endorsers such as Joe Rogan, Emmitt Smith, Payton Manning, and Dana White.
Too late, no refunds.
We the people are winning this one.
We need the stock to drop to zero.
This lesson needs to be remembered by our corporate enemies—forever.
Ahhhh! What a shame! Transheuser Busch / AB/Inbev brought it on themselves!
I kind of remember someone here posting something like: “Don’t you think we’ve done enough harm to them?”
All I can say is GO TO HELL. We need to put the spear through its heart, or the point will not be made effectively, and it will be dismissed as another ‘tantrum from the right’.
I’m surprised that these WOKE CEO’s have not had their asses sued off. I guess its because the class action plaintiffs’ lawyers are all WOKE themselves.
Dylan is going to be one famous little faggot. From now on, the business world will refer to a world-class f-up as a Mulvaney.
The problem with reading articles about the Bud Light debacle is they’d always include a picture of the loathsome freak. I guess they had to do that to drive the point home.
One of the myths of the left is that our movement is top down—driven by influencers and public figures.
This is an example that proves they are wrong.
Our grass roots are deep and strong—and we know what they did—a bunch of big name endorsements and supporters will never change that simple fact.
Zero.
Zero.
Zero.
That must be the goal.
Since the Dylan debacle, AB stock is worth about 8% less, factoring in the 2023 dividend. During that same period, the S&P 500 is up 24%. That is some serious lagging on AB’s part. Not even a hot stock market environment could keep AB’s carcass in positive territory.
“I’m surprised that these WOKE CEO’s have not had their asses sued off. I guess its because the class action plaintiffs’ lawyers are all WOKE themselves.”
EXACTLY - We have an informal oath in upper reaches of the corporate world which is “Shareholder Value is our Friend”. So ANYTHING that might compromise shareholder value, such as making the face of our brand being a tranny when our customers are REAL MEN, would have to be FULLY JUSTIFIED.
...but maybe it is justified? For example, is Blackrock threatening to sell off their holdings if they continue to use normal people? If so, they need to DISCLOSE just that and make the case that the tranny appeared to be the lesser of two evils. But if they do not, then they should be FAIR GAME for Shareholder suits.
The Super Bowl ad with Peyton Manning didn't help any, but he made some money.
Oh well.
For short term stock enjoyment, Reddit is planning its IPO on March 21, and it is even odds whether it will succeed or Hindenburg.
https://en.wikipedia.org/wiki/Reddit
I strongly suspect that its IPO is a “last gasp”.
It is not those two that get my wrath.
It is all the senior executives of the firm who refused to immediately and completely renounce the woke politicization of their company.
They are still at it:
I do not want to hear “they all do it”.
We need to make an example out of InBev senior management.
I used to like Peyton Manning, but the Manning family has totally sold their souls.
I also used to like Emmett Smith, but the fact that he’s allowed himself to be associated with Transheuser Busch is disconcerting, to say the least. Poor judgment, Emmitt.
Brilliant! Bravo!
I somehow had thought that Payton Manning was above joining the purveyors of the sickest of the woke stuff.
My error.
I’m surprised that these WOKE CEO’s have not had their asses sued off. “
You can say that again, billions lost, thousands of jobs gone, businesses closed. They could have avoided it all with a simple apology. But that is the one thing the fools who run AB refused to do because they were so intimidated by and sympathetic to the woke mob. They weren’t going “give in to the neanderthals” and issue an apology, they still won’t.
Constellation Brands (STZ) has been a much better investment on a total return basis over any time period you look at.
Yep, no apologies forthcoming. They fear the woke mob.
Meanwhile Modelo is eating their lunch.
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