Heineken N.V. has today purchased back own shares from Fomento Economico Mexicano SAB (FEMSA) for an aggregate amount of EUR 1 billion. The deal comes only two days after the Mexican Coca-Cola bottler and convenience store operator announced to divest its entire 14.76% aggregate stake in the Dutch brewing group. (inside.beer, 15.2.2023)
Heineken confirmed in a press statement the purchase of 7,782,100 shares in Heineken N.V. at a price of EUR 91 per share (totaling EUR 708 million) and 3,891,050 shares in Heineken Holding N.V. at a price of EUR 75 per share (totaling EUR 292 million).
The purchase is part of the accelerated book build offering by FEMSA of EUR 1.9 billion in shares in Heineken N.V. and EUR 1.3 billion in shares in Heineken Holding N.V. at the same prices per share, which was successfully completed today. FEMSA also placed exchangeable bonds for an amount of EUR 500 million exchangeable into Heineken Holding N.V. shares. Together, the equity offering and the issued exchangeable bonds in which Heineken did not participate represent over half of FEMSA’s economic interest in Heineken, the Dutch brewer announced. As of the settlement date, the remaining shares in Heineken N.V. and Heineken Holding N.V. held by FEMSA will be subject to a lock-up period of 90 days.
FEMSA's Chief Financial Officer Eugenio Garza said in a call with analysts today that "we were pleasantly surprised with the success of the Heineken offer." He added that the demand may mean FEMSA could fully divest from Heineken sooner than projected.
Dolf van den Brink, CEO and Chairman of the Executive Board, commented: “Participation in this equity offering through the purchase of Heineken and Heineken Holding N.V. shares represents a unique investment opportunity and reflects our confidence in the EverGreen strategy, which continues to gain momentum. 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, whilst abiding by our long-term target net debt/EBITDA (beia) ratio of below 2.5x.”
The deal reduces FEMSA’s aggregate share in Heineken from 14.76% to 8.13%.