Molson Coors to tap markets for $2.3B to fund big beer deal

Molson Coors Brewing Co. says it will raise $2.3 billion US with a public offering of 27 million shares this spring to help fund its deal to take over the Miller brand worldwide.

The stock, listed on the New York and Toronto exchanges, will be priced at $86.50 US a share. It's a little lower than the $89 US its stock is priced at now and may mean it will reconsider the price at a later date. 

The listing will help raise cash towards its purchase of Anheuser-Busch InBev's 58 per cent share of MillerCoors.

As part of a complicated restructuring of the worldwide beer business announced last November, Molson agreed to pay $12 billion to buy full ownership of its U.S. beer business and gain worldwide control of the Miller brand name.

Molson Coors and SABMiller had jointly owned MillerCoors since 2008, with SABMiller holding 58 per cent in the U.S. joint venture.

But when SABMiller agreed to a $107-billion US takeover by Anheuser-Busch InBev, maker of Budweiser beers, it agreed to sell its share of Miller Coors to reduce regulatory concern that one company would control the U.S. market.

In addition to the Miller brands, the deal gives Molson Coors perpetual royalty-free U.S. licences for SABMiller import and licence brands including Peroni, Pilsner Urquell, Fosters and Redd's.

Molson Coors also owns brands such as Coors Light, Molson Canadian, Carling, Staropramen and Blue Moon.

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