Anheuser-Busch InBev has completed the previously announced sale of Oriental Brewery (OB) to an affiliate of Kohlberg Kravis Roberts & Co (KKR) for US$1.8 billion.

Under the terms of the agreement, AB InBev will continue its relationship with OB by granting OB exclusive licenses to distribute certain brands in South Korea including Budweiser, Bud Ice and Hoegaarden. AB InBev will also have an ongoing interest in OB through an agreed earnout.

In addition, AB InBev has the right but not the obligation to reacquire OB after five years at predetermined financial terms.

A statement said: "The divestiture of OB is part of AB InBev's ongoing de-leveraging programme and generates proceeds that will be used to repay debt incurred as a result of the combination of InBev and Anheuser-Busch. The impact on recurring results are immaterial and AB InBev expects to record a non-recurring capital gain of US$440m in the third quarter of 2009."

JP Morgan, Deutsche Bank and Lazard acted as financial advisors to AB InBev. Kim & Chang and Sullivan & Cromwell LLP acted as legal counsel.