AB Inbev to sell S.Korean brewery to KKR

BRUSSELS: Anheuser-Busch InBev NV said on Thursday, 7 May 2009, it would sell its South Korean unit Oriental Brewery to the US investment bank Kohlberg Kravis Roberts for US$1.8 billion (1.35 billion euros). The Belgium-based group, however, said it will still have links with the subsidiary by granting KKR exclusive licenses to distribute certain brands in South Korea including Budweiser, Bud-Ice and Hoegaarden. Proceeds generated from the divestiture will be used to repay debt incurred during InBev's acquisition of US beer giant Anheuser-Busch in November 2008, the company said in a statement. Anheuser-Busch InBev also posted Thursday a first quarter net profit of $716 million, nearly doubling the figure from the same period last year when it reported a $373 million gain.