Brussels, Oct 8 - Anheuser-Busch InBev is within a short dash of its $7 billion divestment target after selling its U.S. theme parks, strengthening its hand in further sales even if renewed acquisitions may be some way off.
The sale of its SeaWorlds and Busch Gardens to Blackstone brings the world's largest brewer's divestments to some $6.5 billion. It remains on course to pay off $45 billion of loans that funded InBev's $52 billion takeover of its U.S. rival last November.
"It's been a good performance. It's easy to divest if you sell for nothing or next to nothing, but they have succeeded in getting decent prices for their assets," said Wim Hoste, analyst at KBC Securities.
AB InBev shares rose as much as 3.4 percent on Thursday to 32.70 euros, their highest level since May 2008.
The brewer of Budweiser, Stella Artois and Beck's needs just one further sale to hit its target, the most likely being its 11 breweries in seven central and eastern European countries.
Private equity firm CVC Capital Partners has submitted the only bid, of around $2 billion, sources have said.
AB InBev, determined that none of its divestments become fire sales, has held out for some weeks, prompting CVC to put more equity into its bid, according to bankers close to the deal.
The Blackstone sale reinforces the view that the brewer needs no fire sales and could withdraw.
It could also seek again to find a buyer for assets in Germany, although again there may be only one realistic bidder -- diverse German group Oetker, which reportedly dropped out of the running in January. Divestments to date, plus some $3.8 billion in cash generated in the first half and last year's $9.8 billion rights issue mean AB InBev has raised some $20 billion within 12 months, as well as pushing forward the maturity of over $13 billion of debt.
That has brought its net debt to EBITDA (earnings before interest, tax, depreciation and amortisation) ratio comfortably below its loan covenant limits from close to 6 late last year.
Analysts estimate the multiple will be around 3 at the end of 2010, although well above the end-2007 level of 1.
The covenant limit was 5.2 at the end of the first half.
The news will be good for AB InBev's management. They received no bonuses last year after cost of sales rose above target, but will now judge themselves on net debt to EBITDA -- with a target of 2.5 by 2013.
"It's impressive what it has done in a year. It looked to have paid at the top of the market and there were big questions over whether banks would cough up the debt on the day," said Trevor Stirling, analyst at Bernstein Research.
However, few analysts expect AB InBev to make further takeover forays in the near future. Its executives need instead to focus on integrating their company, squeezing out costs from Anheuser operations and increasing the dividend.
"Management has a lot to do. You can't just get involved with a new deal... New acquisitions? That could be as far away as 2012," Gerard Rijk, analyst at ING.
Last year's merger created a giant dominating the Americas and Europe. Short of diversifying into for example soft drinks only smaller deals seem likely.
The key would be a price, which might increase debt but would boost EBITDA more to keep the debt/EBITDA ratio in check.
One clear target would be Mexico's Grupo Modelo, maker of Corona, in which InBev took over Anheuser's 50 percent stake.
Modelo's $2.5 billion claim because it was not consulted about the AB InBev merger may have to be settled first.
AB InBev may also seek a growing presence in Asian markets, notably China, or be interested in add-on assets in the developed world, such as Spain's Grupo Mahou San Miguel.