Ouilmes Industrial (Quinsa) is to buy one of its major shareholders out of Quilmes International (Bermuda) Ltd (QIB). The Luxembourg-based holding company said yesterday (4 August) that it has entered into an agreement with its controlling shareholders, Beverage Associates Corp. (BAC) and AmBev, pursuant to which it has agreed to purchase from BAC its 5.32% equity interest in Quinsa's Bermuda subsidiary.

"The purchase price for the QIB shares will be determined pursuant to a formula that calculates the value of QIB based on QIB's audited financial statements for the year ended December 31, 2005," the company said. "Under this formula, QIB will be valued at 6 times QIB's EBITDA for 2005 less QIB's net debt as of the end of 2005." The estimated purchase price is US$110m, which will result in Quinsa owning 92.95% of QIB. AmBev will own the remaining 7.05%.

Quinsa said that it expects to acquire title to BAC's QIB shares and to deposit the estimated purchase price into an escrow account within the next 30 days.
 
The agreement also amends certain other provisions of the existing stock purchase agreement between BAC and AmBev.