Mexico’s FEMSA divests stake in Heineken

Mexican conglomerate Fomento Económico Mexicano (FEMSA) has made a partial divestment of its stake in Heineken, with an offering of €500 million of its 2.625% senior unsecured exchangeable bonds due 2026, exchangeable for up to 5,228,758 shares of Heineken.

Posted mercredi, mars 22 2023
Mexico’s FEMSA divests stake in Heineken

FEMSA’s decision is due to its strategy to focus solely on retail, Coca-Cola FEMSA and digital going forward. FEMSA intends to divest its full shareholding in Heineken and Heineken Holding N.V., while FEMSA’s representatives resigned from Heineken’s supervisory board and Heineken Holding N.V.’s board of directors with immediate effect.

FEMSA also launched a tender offer to purchase for cash its outstanding U.S. dollar 4.375% and 3.5% senior notes, due 2043 and 2050, respectively, and euro 1% and 0.5% senior notes due 2033, and 2028, respectively, for an aggregate purchase price, excluding accrued and unpaid interest and additional amounts of up to $2 billion.

The transactions are part of a series of strategic initiatives announced by FEMSA in February as a result of a thorough strategic review of its business platform.

FEMSA announced that its exit from Heineken is part of its plan to strengthen its investments in other sectors such as its Oxxo and Valora convenience stores, pharmacies and gas stations. The plans include extending the presence of the Oxxo stores in the United States, and installing new contactless payment methods in stores.

Following FEMSA’s announcement, Heineken stated that the company would “carefully consider the implications and evaluate all options following the announcement of FEMSA. This may include the option to acquire shares from FEMSA in any future sale, subject to market and other conditions”.

Jean-Marc Huët, chairman of Heineken’s supervisory board, commented: “We are grateful for the commitment and support of the FEMSA representatives on the Supervisory Board over the last 13 years”.

Femsa also aims to enter the fintech market by offering its customers credit through its Spin payment system, which can currently be used to make purchases and send and receive remittances.

FEMSA was represented in Mexico on the transaction by Mexican law firm Ritch Mueller, with a team led by partner Luis A. Nicolau, and who was assisted by Luis Alonso Suárez del Real Tostado and Luis Miguel Posadas Yáñez.