Sector News

Heineken buys back €1bn in shares as FEMSA exit begins

February 18, 2023
Consumer Packaged Goods

Heineken has bought €1 billion worth of its shares from Mexican Coca-Cola bottler, Fomento Economico Mexicano SAB (FEMSA).

The purchase comes after FEMSA launched a €3.7 billion stock and equity-linked sale for part of its holdings in the Dutch beer group.

Dolf van den Brink, CEO and chairman of Heineken’s executive board, said: “Our strong balance sheet allows us to take advantage of this opportunity. This does not change our capital allocation principles, which prioritise investment in the organic growth and expansion of our business.”

FEMSA’s decision to divest its stake in the brewer comes after the company carried out a strategic review of its business platform to shore up its share price. It determined a series of actions and divestitures to achieve strategic focus, including offloading its holding in Heineken.

José Antonio Fernández Carbajal, FEMSA’s executive chairman of the board, commented: “After thoroughly analysing our business platforms, including their strategic opportunities, long-range plans and the best strategy to continue to drive growth and allocate capital in the future, FEMSA’s board of directors has approved a series of decisive actions.”

The buyback is part of an accelerated bookbuild offering by FEMSA of €1.9 billion in shares in Heineken, priced at €91 per share, and €1.3 billion in shares in Heineken Holding, at €75 apiece. The Mexican bottler also placed a sale of exchangeable bonds for an amount of €500 million, exchangeable into Heineken Holding shares.

The bonds will have a maturity of three years and were priced at an annual coupon of 2.625% and a conversion premium of 27.5% with the initial exchange price set at €95.625.

FEMSA’s overall economic interest in the Heineken Group will decrease from 14.76% to 8.13%.

By Phoebe Fraser


comments closed

Related News

April 20, 2024

Tereos opens new innovation centre for EU customers

Consumer Packaged Goods

The facility is designed to foster innovation and deepen collaboration with customers, by offering a range of new services and solidifying its role as a central hub for customer support. Tereos’ team, supported by a network of 50 scientists, will ensure customers can innovate and meet the rising consumer demand for healthier and more sustainable products.

April 20, 2024

Glanbia to buy US flavour platform in $300m deal

Consumer Packaged Goods

Glanbia has agreed to acquire Flavor Producers from Aroma Holding for an initial consideration of $300 million. Flavor Producers is a US-based flavour platform, providing flavours and extracts to the F&B industries, with a focus on organic and natural ingredients.

April 20, 2024

Godiva names former Nike executive as president to boost sales

Consumer Packaged Goods

Lesnard, who previously worked at Nike, The North Face and Sephora, has a mission to “grow and sustain GODIVA’s position and expertise in the premium chocolate category, leveraging ongoing support from pladis to take GODIVA and its legendary chocolate to new heights.”

How can we help you?

We're easy to reach