As Anheuser-Busch, SABMiller Deal Closes, Altria Details Impact
October 11 2016 - 10:10AM
Dow Jones News
Altria Group Inc. said it is now a significant shareholder in
Anheuser-Busch InBev NV, after AB InBev's roughly $108 billion
acquisition of rival SABMiller PLC closed Monday.
The tobacco company, which was a big SABMiller shareholder,
received AB InBev shares representing about 9.6% of the combined
company, as well as $5.3 billion in cash. Altria also said it is
expanding its stock-buyback program to $3 billion, up from $1
billion previously.
Because of timing differences between Anheuser-Busch's and
Altria's financial reporting quarters, Altria will now record
Anheuser-Busch results on a one-quarter lag. Altria updated its
financial projections accordingly, and expectis earnings per share
to be between $2.98 and $3.04, compared to $3.01 to $3.07
previously.
Altria expects to record a pretax gain in its reported earnings
of about $13.7 billion, or $4.55 per share, related to the
merger.
Marty Barrington, Altria's Chairman and Chief Executive, and
Billy Gifford, Altria's Financial Chief, have also been appointed
to AB InBev's board.
Altria shares rose 0.3% to $61.95 in premarket trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
October 11, 2016 09:55 ET (13:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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