Altria becomes major shareholder in Anheuser-Busch, triples share buyback program
MARKETWATCH 7:22 AM ET 10/18/2016
Symbol Last Price Change
MO 62.775up +0.345 (+0.55%)
QUOTES AS OF 10:50:31 AM ET 10/18/2016
Altria Group Inc. (MO) said Tuesday that it has become a significant shareholder in Anheuser-Busch InBev S.A. (ABI.BT), following the completion of Anheuser-Busch's merger with SABMiller PLC . Altria(MO) received 185.1 million shares, or 9.6% of the shares outstanding, of Anheuser-Busch, and about $5.3 billion in cash. The smoking and wine company said it will record a gain of $13.7 billion, or $4.55 a share, mostly in the fourth quarter, as a result of the merger. As a result of the how the gain will be accounted for, Altria(MO) trimmed its 2016 adjusted earnings-per-share outlook to $2.98 to $3.04 from $3.01 to $3.07. Separately, Altria(MO) said it was expanding its share buyback program to $3 billion from $1 billion, to be completed by the end of the second quarter of 2018. The stock, which was still inactive in premarket trade, has climbed 7.3% year to date, while the S&P 500 has gained 4%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
