AB Inveb sells South Korean beer unit to KKR for US$1.8 bln

SEOUL, May 7 (Yonhap) -- Anheuser-Bush InBev NV said Thursday it has agreed to
sell its South Korean beer unit to U.S. private equity fund KKR & Co. for US$1.8
billion to repay its debts.
AB InBev plans to complete the sale of Oriental Brewery Co. in the third quarter
and use the proceeds to repay its loan which was created by taking over U.S.
brewery Anheuser-Busch Cos. in November last year, it said in a statement.
The world's largest brewer is expected to take profit margins worth about $500
million from the sale.
Oriental Brewery has about 40 percent of the South Korean beer market, following
Hite Brewery.
AB InBev will have a right to repurchase Oriental Brewery within 5 years after
closing the sale in accordance with the terms of the sale, but it was not
required to buy back the South Korean brewer, the company said.
Lotte Group, a South Korean retail and beverage conglomerate did not enter a main
bid for Oriental Brewery after its initial offer for the brewer was rejected as
too low in early March.
ksnam@yna.co.kr
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