Sullivan & Cromwell and Freshfields Bruckhaus Deringer have the lead roles as Belgian beer giant Anheuser-Busch InBev SA/NV spins off its Asia-Pacific business, in a Hong Kong initial public offering that could raise at least $5 billion.

The brewer is listing Budweiser Brewing Co. APAC Ltd., which produces, imports and distributes more than 50 beer brands, including namesake Budweiser, Stella Artois and Corona. According to its filing, Budweiser Brewing was the largest beer company in the Asia-Pacific region by retail sales value in 2018, citing London-based research firm GlobalData.

Budweiser Brewing is expected to list in July and raise at least $5 billion, according to media reports. Reuters reported that the deal comes as its parent, AB InBev, is currently working to reduce a $102.5 billion debt pile accumulated following the late 2016 takeover of U.K. rival SABMiller Plc. for $106 billion.

Sullivan & Cromwell partners Francis Aquila in New York, John Horsfield-Bradbury in London and Kay Ian Ng in Hong Kong are advising the issuer. Aquila also led the firm's representation of AB InBev in the SABMiller deal in 2016. In 2014, he, together with Hong Kong partner Michael DeSombre, acted for AB InBev on a $5.8 billion acquisition of South Korea's Oriental Brewery Co. Ltd.

Freshfields partners Teresa Ko in Hong Kong, David Ludwick in London, Valerie Ford Jacob in New York and Vincent Macq in Brussels are representing Budweiser Brewing as co-counsel. The Magic Circle firm also advised AB InBev on the SABMiller merger.

The issuer is being represented by Fangda Partners on Chinese law, Kim & Chang on Korean law and Gilbert + Tobin on Australian law. Kim & Chang was also AB InBev's Korean counsel on the Oriental Brewery deal.

Clifford Chance is advising JPMorgan and Morgan Stanley as the joint sponsors. King & Wood Mallesons is advising the banks on Chinese law.

At $5 billion, Budweiser Brewing's listing would more than double the $4.2 billion raised from 43 IPOs in Hong Kong in the first four months of this year, according to data compiled by Hong Kong-based research firm RyanBen Capital. The listing will also be the largest in Hong Kong since China Tower Corp. Ltd.'s $7 billion float in August last year; Freshfields' Ko and Clifford Chance were on that deal as well, as issuer's and joint sponsors' counsel, respectively.

This week, AB InBev was fined more than $225 million by the European Commission for breaching antitrust rules by abusing its dominant position in the Belgian beer market for eight years since 2009.

|

Related Stories:

Huge SABMiller Acquisition Is Global Deal of the Year