Probe 'won't hit Interbrew float'

By ROSS TIEMAN
Updated:

 

The world's second-largest brewer, Interbrew, has reaffirmed its determination to press ahead with its December stock market flotation despite uncertainty over its value caused by Britain's Competition Commission inquiry into its £2.3bn purchase of Bass Brewers. 'This will have no effect whatsoever on the timing of our initial public offering,' said spokesman Corneel Maes.

The IPO, involving new shares equal to as much as 25% of the enlarged equity, will be completed before 4 January, when Trade and Industry Secretary Stephen Byers is due to announce whether Interbrew will have to trim its 32% share of Britain's beer market.

The combination of Bass with Interbrew's Whitbread operation, which already accounted for 10% of British brewing, is particularly sensitive for the float because of its impact on Interbrew's profitability.

Bass generated operating profits of £159m last year, on sales of £1.8bn, while Inter-brew, now second only to Budweiser brewer Anheuser Busch worldwide, earned net profits of 230m euros (£134.5m) on sales of 3.24bn euros.

Merrill Lynch International and Fortis Bank are joint global co-ordinators to the flotation, which had been expected to capitalise Interbrew at around 7.5bn euros and which is expected to win it a place in the Bel-20 index of Belgium's biggest blue-chip companies.

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