InBev has reached an agreement to sell the totality of its 12.02% minority stake in the Spanish brewer Damm S.A. (Damm) for a minimum cash consideration of €176m.

InBev said it had sold the stake to a group of private investors.

The Belgian brewer still remains active in the Spanish beer market through its existing wholly-owned subsidiary which imports a number of InBev's brands including Beck's, Stella Artois and Franziskaner.
InBev has agreed to sell 5,328,864 shares at a price of €33 per share. An additional amount may be payable conditional on Damm's financial performance in 2005. InBev expects that the final consideration received will represent an Enterprise Value/2004 EBITDA multiple of between 11.5 and 12.5 times.

InBev acquired its minority stake in Damm for €84m in 2002, when the Spanish regulatory authorities obliged Group Mahou/San Miguel to dispose of its stake in Damm. The sale will result in a capital gain, which will be shared equally with Group Mahou/San Miguel in accordance with the agreement signed in 2002.

John Brock, InBev CEO, said: "The sale of our stake in Damm is one more example of our increased discipline in capital allocation." 

InBev expects the transaction to close in the third quarter of 2005.

Lazard acted as exclusive financial advisor to InBev on this transaction.