UPDATE 3-ABInBev launches rights issue, stock drops
* Prices rights issue at 6.45 euros per share
* Shares close sharply lower
(Adds closing share price)
BRUSSELS, Nov 24 (Reuters) - Anheuser-Busch Inbev INTB.BR launched a planned rights issue at a steeply discounted 6.45 euros per share on Monday to part-fund InBev's $52 billion deal to create the world's largest brewer, depressing its stock.
The eight-for-five offer of 986.1 million new shares, to raise $9.8 billion as part of the refinancing plan for the Anheuser-Busch takeover, will run from Nov. 25 until Dec. 9, 2008. The existing shares trade ex-rights from Nov. 25.
In euro terms, the total size of the new issue is 6.36 billion euros, given that the group had pre-hedged its euro/dollar exposure at $1.5409, against the current rate of around $1.26.
ABInbev shares were moderately weaker throughout the day, but tumbled in the final hour of trading to close 19.9 percent down at 16.50 euros, while the DJ Stoxx European food and beverage sector index .SX3P ended 4.6 percent higher.
Shares in rivals Heineken (HEIN.AS) and Carlsberg (CARLb.CO) finished up 2.5 and 3.5 percent respectively.
Kristof Degraeve at SG Private Banking Belgium said the heavily discounted issue was certainly weighing on the stock.
"The group said it would wait until financial markets had stabilised before launching the rights issue. I don't think we can now say that financial markets have stabilised," he said.
Other analysts said the rights offer now at least removed some uncertainty for investors and that the controlling shareholders would be buying more shares than initially indicated, removing an overhang of stock.
The Belgium-listed brewer, whose shares had dropped by 16 percent on Friday amid rumours the issue would come soon, said in a statement that it expected total net proceeds after costs and expenses to be 6.26 billion euros.
ABInbev's controlling shareholders will subscribe to 2.8 billion euros in new funds.
For the remaining part of their rights, the controlling shareholders will subscribe to the maximum number of shares they can finance through the sale of ABInbev shares, ex-rights ABInbev shares or the rights themselves, the group said.
The company said an accelerated placement of up to some 1.2 billion of ex-rights ABInbev shares was being launched on Nov 24 on behalf of key Belgian shareholders and another part of the controlling group, Sebastien holding.
The brewer, which sealed its takeover last week, had planned to carry out the rights issue last month, but postponed it due to volatile financial markets.
It also plans to divest non-core assets to raise a further $7 billion within the next 12 months. Chief Executive Carlos Brito has said that it could do so by selling two to three businesses.
Degraeve said: "From a strategic point of view the deal still makes sense ... it offers more possibilities for cost savings." He added however that it had become a lot less attractive with no boost to earnings per share before 2011.
BNP Paribas, Deutsche Bank and J.P. Morgan are acting as Joint Global Coordinators and Joint Bookrunners of the offering. ($1=.7987 euros) (Editing by Philip Blenkinsop, Greg Mahlich and Sharon Lindores)
