Altria hires Perella Weinberg and Credit Suisse advisers, prompting talk of SABMiller stake sale; AB InBev may move tax base
Altria (NYSE: MO), the Richmond, Virginia-based parent of Philip Morris tobacco company, has engaged Perella Weinberg and Credit Suisse as advisers, The Sunday Times reported. The appointment has fuelled speculation that Altria is considering a sale of its 27% holding in the UK-based brewing group SABMiller (LON: SAB), which has been approached for takeover by rival brewer Anheuser-Busch InBev (EBR: ABI) of Belgium, the report said.
In the event that Altria opts to dispose of its SABMiller stake, the British brewing company would likely find it impossible to defend itself against AB InBev, the item reported.
According to Wall Street sources cited in the piece, Altria does not believe its own interests are best represented by SABMiller’s board-appointed advisers, including JPMorgan and Morgan Stanley, and so has made its own appointments.
Any sale is likely to see Altria exchange its shares for stock in AB InBev, thus avoiding a significant taxation charge, the report said. A market source cited in the article said Altria is likely to demand a board seat at the merged brewing business, which is expected to have an approximately GBP 177bn valuation.
The second-biggest shareholder in SABMiller, the Santo Domingo family of Colombia, who own a 14% stake, is thought also to be coming around to the idea of selling their holding, the item reported. People with close links to SABMiller pointed out that Altria and the Santo Domingos’ combined holding is still less than a majority, the report said.
Meanwhile, The Sunday Telegraph reported that AB InBev is looking at relocating its tax domicile from Belgium to the UK if its takeover succeeds, to avoid saddling SABMiller investors with a major tax bill on dividends in the future.
The Telegraph report said AB InBev is believed to have secured the blessing of the San Domingos and Altria prior to its approach to SABMiller. According to unspecified sources, the board of SABMiller does not want to cede to AB InBev too quickly but is open to negotiations and could make a further announcement in the next few days.
Sunday Times, Sunday Telegraph