Altria Group Inc., one of the world's largest tobacco and cigarette corporations and former major SAB Miller shareholder, receives less of the newly enlarged Anheuser-Busch InBev NV than expected. The Virginia based company gets in exchange for its 27% stake in SABMiller $5.3 billion in cash and only a 9.6% share of postmerger AB InBev instead of the expected 10.5%.
The depreciation of the British pound after Britain’s Brexit vote inflated the cash-and-share option by 18% as opposed to an all cash offer and caused more SAB Miller shareholders than anticipated to accept the combined offer. Since the announcement of AB InBev’s takeover offer, shares of the Belgium based company, which are listed in euros, appreciated considerably against the cash offer in British pounds. The cash-and-share offer was originally designed for Altria and the Santo Domingo family, which held a combined 41% stake in SAB Miller and wanted to remain invested in the beverage industry.
As part of the deal Altria will also dispatch two representatives, namely Chief Executive Marty J. Barrington and Chief Financial Officer William (Billy) F. Gifford jr., to the AB InBev board. The Santo Domingo family receives only one seat on the supervisory board of the enlarged company and dispatches Alejandro Santo Domingo Dávila, former Non-Executive Director of SABMiller und Managing Director of Quadrant Capital Advisors.