HOT TRUB
November 8, 2000
Edited by: Peter LaFrance (plfrog@aol.com)
Presented by: American Brewer
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Vol.1 No.3
This newsletter will post items of special interest to brewers, members of the
brewing and distilling community, and members of the media that covers the
beverage alcohol business.
Should you wish to contribute in any way to this venture please contact Peter
LaFrance at plfrog@aol.com
If you wish to be dropped from this list please respond to this posting to plfrog@aol.com
and include the word remove in the Subject: line.
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This morning the Reuters News service reported that Interbrew had announced an initial public offering of about 20 percent of its shares worth up to 3.3 billion euros. “Interbrew said it would float 88.2 million new shares at a price range of 30 to 38 euros a share. The shares are to be listed on Euronext Brussels on December 1,” said Reuters.
Interbrew currently has over 333 million shares outstanding. When the new 88 million new shares are issued the total of 421 million shares results in an initial free float of almost 21 percent. As we reported last week, the shares will be subject to a two-month lock-up period. After that time a certain number of shares will be freed up to meet the 25 percent free-float required for eligibility in the Bel-20 blue chip index of Euronext Brussels.
The $3.3 billion acquisition of the beer division of Britain's Bass and the acquisition of Whitbread earlier this year moved Interbrew into the number two spot among world brewers.
Yesterday, Reuters reported that Brazilian AmBev (Companhia das Bebidas das Americas SA) said it plans to sell its Bavaria brand to Molson. Molson will pay $98 million for Bavaria and five factories but the sale price could rise to $213 million depending on AmBev's performance over the next five years.
The divestiture of the Bavaria brand and five plants was a condition made by the "Conselho Administrativo de Defesa Economica" - (Administrative Council for Economic Defense) on March 30 to secure approval of the merger between the Antarctica and Brahma breweries. In addition to this, AmBev will have to share its Antarctica retail distribution network with Molson.
Analysts put Bavaria's value - including its five plants - at $200 million to $300 million.
Molson's purchase of Bavaria gives the Canadian brewer its first foothold in Brazil and in South America as the company looks to emerging markets to raise revenue.
Dave Preston reports that the Great Canadian Beer Festival sold out in record time.
Tickets went on sale October 23rd for $15 each and by the 31st all 4000 had been sold.
The Great Canadian Beer Festival (produced by the GCBF Society and CAMRA Victoria) features more than 120 beers and ciders from 36 brewers at The Victoria Conference Centre Dec 1-2. All profits go to charity.
The Business Wire reports that over 500,000 people visited Munich’s Oktoberfest this year via Sensormatic Electronics Corporation's Internet video transmissions, generating a total of 6.5 million web site hits that downed 25.5 gigabytes of data.
The technology delivered images of sufficient quality under less than ideal situations, prompting Sensormatic Electronics to call attention to what they called “business applications.” Sensormatic Electronics Corporation is a supplier of electronic security systems.
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