Marlboro maker to sell $2.3 billion worth of Bud Light maker's stock

By Steve Goldstein

Altria to use proceeds from Anheuser-Busch InBev stock sale to buy back its own shares

Altria late Wednesday said it plans to sell part of its stake in Anheuser-Busch InBev, which it will use to buy back its own stock.

The maker of Marlboro (MO) said it was selling 35 million shares, with an option to sell another 5.25 million shares, out of the 197 million share stake it holds, which amounts to 10% of the company.

At Wednesday's closing price, the 35 million shares were worth $2.3 billion. Anheuser-Busch InBev (BUD) (BE:ABI) shares slipped 5% in early trade.

"Our continued investment reflects ongoing confidence in ABI's long-term strategies, premium global brands and experienced management team," said Altria CEO Billy Gifford in a statement.

AB InBev will buy $200 million of the stock Altria is selling, according to a Securities and Exchange Commission filing. Analysts at UBS said the brewer's current deleverage plans will help it buy back more stock in the future if Altria sells more.

Anheuser-Busch InBev's U.S. business has been rocked by plummeting Bud Light sales, in wake of last year's decision to promote the brand with transgender influencer Dylan Mulvaney. But the brewer's global business has been unaffected by the boycott.

The stock's decline on Thursday puts it on track for its worst single day performance since March 7, 2022, more than a year before the Mulvaney controversy first erupted.

Altria stock rose 1% and it's up 8% this year.

-Steve Goldstein

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03-14-24 1051ET

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