AB InBev declines to comment on report of Asian business IPO

Reuters  |  BRUSSELS 

(Reuters) - InBev, the world's largest brewer, declined to comment on a report that it was considering a flotation of part of its Asian operations, adding that it remained committed to its in the region.

"In line with our culture, we always look at opportunities to optimise our and drive long-term growth and we are very committed to our in the region and excited about the potential of this geography," an AB said.

reported on Friday that the Belgium-based maker of Budweiser, Corona and was considering an initial public offering of part of its Asian operations as a way to alleviate its debt.

said that any deal could raise more than $5 billion, with the whole of the Asian business valued at around $70 billion.

AB shares, which fell by 38 percent last year, were up 3.0 percent by 1030 GMT.

The company, which paid around $100 billion for nearest rival in 2016, announced in October that it would be cutting its proposed dividend in half as beer sales fell in its largest markets of the and

AB is targeting a return to a net debt to EBITDA ratio of two times. Trevor Stirling, at Bernstein Research, estimated that this multiple was 4.7 at the end of 2018 and would fall to 4.3 at the end of 2019 and 3.7 at the end of 2020.

(Reporting by Philip Blenkinsop; Editing by and Kirsten Donovan)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 11 2019. 16:55 IST