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 ...
The Dylan Mulvaney advertisement was released on April Fool’s Day 2023. Nobody realized at the time how appropriate that was. It hasn’t even been a year yet. For those disappointed that the effect wasn’t worse, be patient. That’s an astonishing feat in market disaster already, and it’s young yet.
“They fear the woke mob.“
Not just fear they are fellow travelers
You’re so right
Nobody declared a boycott. We just show our displeasure with our pocketbooks.
And we don’t forget.
If I understand it correctly, isn’t this a kind of corporate austerity?
‘The company noted that it expects to use the cash generated to buy back its own shares’
Isn’t it meant to protect the company from outsiders, financially and governance wise?
They swallowed the poison pill of Transheuser-Busch / InBev for $25B back in 2016. That stock is trading at less than half that price, forcing Altria to sell some at a loss to keep themselves from getting taken over.
It's as though the wokeness is intentional; to lower the stock value and weaken the companies that owned stock, and then buy the stockholder companies' shares at a reduced price.
Hmmm.
I guess queers don’t drink enough beers.
ButtWeyzer
The world of homo-ism will never be happy with keeping their depravity and perversion a secret. They want to put it on display and be affirmed.
We, the people, have to be able to voice our own opinion. It is nice to know that it has made a difference.
I hope DillMan MulVanity is crying like a little girl. The empowerment of these clowns with mental illness is alarming.
Not a boycott. A re-branding. PPL aren’t going back.
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