CVC to bid for AB InBev CEE assets with $2.1 billion offer: report
29 Jul 2009
Private equity group CVC Capital Partners is in the fray to acquire the central and eastern European assets of Anheuser-Busch InBev for an estimated $2.1 billion, the biggest acquisition bid by a private equity firm in Europe this year.
According to Belgian newspaper De Tijd, CVC is making a bid to acquire the eastern European assets of Anheuser-Busch InBev. Also in the fray is rival TPG Capital, with Kohlberg Kravis Roberts reported to have dropped out of the bidding.
Last week, an affiliate of Kohlberg Kravis Roberts completed the acquisition of Anheuser-Busch InBev's South Korean unit Oriental Brewery for $1.8 billion.
CVC is said to be in discussions with a large consortium of banks to fund the acquisition. According to the paper, CVC is talking to 13 banks including HSBC, Unicredit, Calyon and Societe Generale, to raise as much as €700 million.
CVC would pay a separate tranche of €800 million in shares, if its bid were successful.
Leuven, Belgium-based AB InBev, with 2008 revenue of €16.10 billion and profit of €1.288 billion, had incurred a debt of $45 billion following the $52 billion acquisition of Anheuser-Busch by InBev in July 2008. (See: InBev acquires Anheuser-Busch for $52 billion; Budweiser to be flagship brand)
