Altria raises buyback program by $2.4B in connection with AB InBev share sale

Altria Group (MO) announced that it has agreed to sell 35M shares of Anheuser-Busch InBev (BUD) through a global secondary offering comprised of a public offering of ABI ordinary shares represented by American depositary shares, or ADS, in the United States, a public offering of ABI ordinary shares in the United States, a concurrent private placement of ABI ordinary shares in the European Economic Area and the United Kingdom and an offering of ABI ordinary shares, including ABI ordinary shares represented by ADSs, in other countries outside the United States, at a price of $61.50 per ADS, corresponding to EUR 56.17 per ABI ordinary share. In addition, ABI will repurchase $200M of ordinary shares directly from Altria, concurrently with, and conditional on, completion of the offering. The aggregate amount of the offering and repurchase by ABI is approximately $2.4B. Altria has also granted the underwriters an option to purchase up to 5.25M additional ABI shares owned by Altria at the price per ADS paid by the underwriters in the offering, exercisable within the next 30 days. In connection with the pricing of the offering, Altria announces a $2.4B increase to its existing $1B share repurchase program. Its board has authorized the expanded program, which the company expects to complete by December 31, 2024. As part of the expanded share repurchase program, Altria expects to enter into an estimated $2.4B accelerated share repurchase, or ASR, program. It expects cash savings from the elimination of future dividend payments on the repurchased shares. “These opportunistic capital allocation decisions reflect our ongoing confidence in Altria’s future and the significant value offered in our shares today. We have a longstanding history of returning cash to our shareholders, and today’s announcement reflects our continued desire to create long-term shareholder value,” said Billy Gifford, Altria’s Chief Executive Officer.