The sale has created another headache for the beer giant.

Kristen Kazarian, Managing Editor

March 19, 2024

1 Min Read
Cigarette maker sells shares of AB InBev
The beer giant has another headache to deal with after sold shares.Image courtesy of Ian Logan / The Image Bank via Getty Images

AB InBev’s stock dropped more than 5% Thursday after tobacco giant Altria sold nearly a fifth of its 197 million shares in the alcohol giant.

Altria, US maker of Marlboro cigarettes as well as Copenhagen and Skoal, sold around 35 million shares or around a fifth of its total holding. AB InBev plans to buy back $200 million worth of shares, news agency Reuters reported.

Belgium's Financial Services and Markets Authority (FSMA) requested that AB InBev's shares be suspended until after the publication of a press release giving details on pricing. The suspension was lifted thereafter.

In a statement, AB InBev stated Altria's underwriters would pay just under 55 euros, or $60, per AB InBev share, a discount of around 6.5% discount to Wednesday's closing price of 58.82 euros per share.

The tobacco maker said that its sale of AB InBev stocks is intended to drive value to its own shareholders.

The sale will see Altria's holding in the company reduced to around 8.1%, or 7.8% if its underwriters fully exercise an option to purchase additional securities.

Altria received cash and a stake in AB InBev in return for its holding in SABMiller when AB InBev acquired the African beer maker in 2016, also adding to its stake around that time.

Since then, when the beer giant was trading at $120-$130 per share, it has been in steady decline and traded for just over $64 per share on Wednesday.

About the Author(s)

Kristen Kazarian

Managing Editor

Kristen Kazarian has been a writer and editor for more than three decades. She has worked at several consumer magazines and B2B publications in the fields of food and beverage, packaging, processing, women's interest, local news, health and nutrition, fashion and beauty, automotive, and computers.

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