FEMSA announces price of US$3.74B to acquire its 14% stake in Heineken; FEMSA is Heineken's second-largest shareholder

February 17, 2023 (press release) –

Mexico's Femsa announced Thursday an offer of common shares of Heineken N.V. and Heineken Holding N.V. and unsecured bonds of the second for an amount of about 3,000 and 500 million euros , respectively, after announcing the day before its decision to sell its stake in the Dutch brewery.

Femsa informed on Wednesday that in a period of two to three years, it would place its shares in Heineken in the market, which are equivalent to 14.% of that firm, and will use the resources to pay part of its debt and finance its future growth through greater capital investments (CAPEX).

The Mexican company said in a statement that Heineken N.V. committed to repurchase its shares in this offer for at least 707 million euros , as well as those of Heineken Holding N.V. for at least 296 million euros . Separately, on Thursday, the Dutch company also confirmed its intention to participate.

Femsa's shares rose around 6% earlier in the day, following the announcement of the divestment in the Dutch brewer, and increased its climb to around 9% after the report of the offer.

Its shares were heading for their best day in two years and were at the top of the leading S&P/BMV IPC index, which groups the most traded shares in the domestic market, and started the day with a slight decline.

According to Femsa, it is expected that the final price of the simultaneous share offering will be determined on Friday, settlement will take place four days later and the closing of the exchangeable bond offering will take place on the 24th of this month. Investors will have the opportunity to participate in both processes, he added.

In addition, he detailed that he also expects L'Arche Green N.V. , the company through which the Heineken family exercises control of Heineken Holding N.V. , to participate in the share offering.

"The company is clearly addressing its issues," analysts at Actinver Research said in a note, noting that the market should welcome the divestment, as investors were "concerned" about the company's growth and its complex corporate structure.

Source: Reuters

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.