Debt headache for AB InBev
AB InBev has struggled to pay down the debt that was accumulated to fund the late 2015 purchase of SABMiller
For most of the time since it listed in January 2016 at R2,000, the AB InBev share price has gone in one direction: downward.
In January, the share price reached a three-year low of R930 after the biggest beer group in the world announced it would be cutting back on dividends to shore up its cash resources. While the recovery, to a current R1,316.93 provided much-needed relief it’s difficult to see how investor sentiment can be sustainably reversed while there’s $100bn of debt hanging over its head. Management seems determined to address the problem.