Mexico's FEMSA to launch $3.5 bln share, notes offer in Heineken divestment bid (updated)
16/02/2023 18:54
(Updates with detail into offer)
MEXICO CITY, Feb 16 (Reuters) - Mexican bottling and
retail conglomerate FEMSA will offer a total of 3.5 billion
euros ($3.7 billion) in common shares and unsecured notes in
Dutch beer giant Heineken as it looks to divest from the
company, FEMSA said Thursday.
Heineken, as well as an investment vehicle controlled by the
Heineken family, are expected to participate in the offering,
FEMSA added in a filing to Mexico's main stock exchange.
Heineken has committed to repurchasing around a billion
euros worth of its shares, both Heineken and FEMSA said
Thursday.
FEMSA, which saw its own
share prices rise
near 9% around midday Thursday, had announced plans to
divest its stake
in the world's second-largest brewer the day before.
It has previously reported a 14.8% combined stake in the
Heineken Group, in which the Heineken family holds just over
50%. The offer announced Thursday intends to sell off around 6%
of FEMSA's stake in the brewing group.
Analysts at Actinver Research estimated, based on
Wednesday's closing prices, that the total divestment - which
aims to help cut debt and fuel growth - would fetch FEMSA some
$7.7 billion, roughly a quarter of its market value.
The final prices in the share and notes offering will be
determined and announced Friday, FEMSA said. The firm will also
hold a call Friday to give more detail into the divestment.
($1 = 0.9355 euros)
(Reporting by Kylie Madry; Editing by Sarah Morland)
((Kylie.Madry@thomsonreuters.com;))