Carlsberg wants to acquire 100% of the shares of ABInbev for $109 billion. The FOCF of SAB Miller was $10bn in the last book year, the EBITDA $5.7bn, debt $13bn and the cost of capital that Carlsberg is using for this deal is 20%. Why would this be considered an expensive deal for Carlsberg? Hint: step (1) go from enterprise value (FOCF/WACC) to equity value and then calculate cash flow gap and step (2) review multiples. Date 04-06-2013 12-03-2013 18-08-2012 03-10-2011 09/08/2011 03/08/2011 02/02/2011 05/08/2010 30/03/2010 11/01/2010 27/08/2009 14/05/2009 28/01/2009 14/07/2008 03/04/2008 12/02/2008 25/01/2008 Target Company Cornish Orchards Ltd Duvel Moortgat Nv ABP Capital Pub Company Plc, The Wells & Young's Brewing Company Limited Pivovarna Lasko d.d. Sharp's Brewery Limited Brouwerij De Koninck NV Efes Breweries International N.V. FEMSA Cerveza SA de CV Anheuser-Busch InBev (Ireland and Scotland) Kompania Piwowarska SA (28.1% Stake) Bere Azuga S.A. (71% Stake) Anheuser-Busch Companies, Inc. Refresh UK Pivovarna Lasko d.d. (58% Stake) Scottish & Newcastle Limited Bidder Company Fuller Smith & Turner Plc Fibemi Sa Heineken NV Greene King Plc Charles Wells Pub Company KS Nalozbe d.d. Molson Coors Brewing Duvel Moortgat NV Anadolu Efes Biracilik Heineken N.V. C&C Group Plc SABMiller Plc Ursus Breweries S.A. Anheuser-Busch InBev NV Marston's Plc BIDCO for Pivovarna Lasko Sunrise Acquisitions Limited EV 5 124 5.590 85 43 88 25 30 896 5.300 204 2.910 9 36.814 15 755 13.007 Sales 3,4x 3,8x 3,3x 6,5x NA NA 1,3x 3,5x 1,4x 2,1x 1,1x 2,8x 1,3x 3,1x NA 2,3x 3,2x EBITDA 15,3x 17,3x 17,1x 16,1x 3,7x 9,0x 9,6x 15,2x 7,2x 11,2x 8,3x NA NA 15,0x 8,7x 12,0x 22,8x EBITA 22,0x 25,8x 24,0x 23,2x 6,3x NA 12, 1x 19,1x 14,6x 15,4x NA NA NA 20,2x 10,0x 20,4x 30,0x Average Median 2,8x 2,9x 12,6x 12,0x 18,7x 20,2x SAB Miller Anheuser-Busch InBev NV 109.000 5 19 25 Carlsberg wants to acquire 100% of the shares of ABInbev for $109 billion. The FOCF of SAB Miller was $10bn in the last book year, the EBITDA $5.7bn, debt $13bn and the cost of capital that Carlsberg is using for this deal is 20%. Why would this be considered an expensive deal for Carlsberg? Hint: step (1) go from enterprise value (FOCF/WACC) to equity value and then calculate cash flow gap and step (2) review multiples. Date 04-06-2013 12-03-2013 18-08-2012 03-10-2011 09/08/2011 03/08/2011 02/02/2011 05/08/2010 30/03/2010 11/01/2010 27/08/2009 14/05/2009 28/01/2009 14/07/2008 03/04/2008 12/02/2008 25/01/2008 Target Company Cornish Orchards Ltd Duvel Moortgat Nv ABP Capital Pub Company Plc, The Wells & Young's Brewing Company Limited Pivovarna Lasko d.d. Sharp's Brewery Limited Brouwerij De Koninck NV Efes Breweries International N.V. FEMSA Cerveza SA de CV Anheuser-Busch InBev (Ireland and Scotland) Kompania Piwowarska SA (28.1% Stake) Bere Azuga S.A. (71% Stake) Anheuser-Busch Companies, Inc. Refresh UK Pivovarna Lasko d.d. (58% Stake) Scottish & Newcastle Limited Bidder Company Fuller Smith & Turner Plc Fibemi Sa Heineken NV Greene King Plc Charles Wells Pub Company KS Nalozbe d.d. Molson Coors Brewing Duvel Moortgat NV Anadolu Efes Biracilik Heineken N.V. C&C Group Plc SABMiller Plc Ursus Breweries S.A. Anheuser-Busch InBev NV Marston's Plc BIDCO for Pivovarna Lasko Sunrise Acquisitions Limited EV 5 124 5.590 85 43 88 25 30 896 5.300 204 2.910 9 36.814 15 755 13.007 Sales 3,4x 3,8x 3,3x 6,5x NA NA 1,3x 3,5x 1,4x 2,1x 1,1x 2,8x 1,3x 3,1x NA 2,3x 3,2x EBITDA 15,3x 17,3x 17,1x 16,1x 3,7x 9,0x 9,6x 15,2x 7,2x 11,2x 8,3x NA NA 15,0x 8,7x 12,0x 22,8x EBITA 22,0x 25,8x 24,0x 23,2x 6,3x NA 12, 1x 19,1x 14,6x 15,4x NA NA NA 20,2x 10,0x 20,4x 30,0x Average Median 2,8x 2,9x 12,6x 12,0x 18,7x 20,2x SAB Miller Anheuser-Busch InBev NV 109.000 5 19 25
