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InBev sells South Korean brewer in debt drive

07-May-2009

Related topics: Financial

Anheuser-Busch InBev had today announced an agreement with private equity group Kravis Roberts (KKR) to offload its South Korean-based subsidiary Oriental Brewery, thought to be the country’s second largest beer producer.

The multinational brewer will take $1.8bn (€bn) from the sale in a bid to offset debts incurred from its purchase of Anheuser-Busch. The group claims that it will continue to exchange best practices with KKR that will see the equity buyer exclusively distribute Budweiser, Bud-Ice and Hoegaarden.

Under additional terms of the deal, Anheuser-Busch InBev says it also has the right to possibly back the operations within a five-year period.

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