Femsa sells a 5.24% stake in Heineken for 2.5bn euros

Heineken’s second-largest investor, Femsa, has announced it has sold a 5.24% stake in the brewer for €2.5 billion.

Femsa said it has offered 3.9% of Heineken’s shares at a price of €84.50 each to institutional investors outside Mexico as well as 2.67% in the brewer’s parent company Heineken Holding at €78 each.

Following the completion of the deal, Femsa’s shareholding in Heineken will decrease from 12.53% to 8.63% and in Heineken Holding from 14.94% to 12.26%, an overall decrease of Femsa’s economic interest in the Heineken Group from 20.00% to 14.76%.

Mexican bottler Femsa sold its beer operations to Heineken in 2010 in exchange for shares in the company.

It is expected that the transaction will be finalised on 21 September. Femsa will still retain one seat on the Board of Directors of Heineken Holding and two seats on the Supervisory Board of Heineken.

In a statement, Femsa said it remains a significant shareholder in the Heineken Group and that it is a ‘long-term supporter’ of its strategy.

L’Arche Green, the entity through which the Heineken family exercises control of Heineken Holding, said it would by back over 2.5 million shares in the company.

Femsa CEO Carlos Salazar Lomelín said: “We have long held a very positive view of Heineken as a long-term investment. The transaction priced today does not represent or reflect a change in our view or expectations.

“However, the equity offering will allow us to partially monetise our position while retaining our existing governance rights in Heineken, taking advantage of the favourable tax treatment afforded by the Repatriation Decree issued by the Mexican Government.

“In accordance with the Decree, we plan to invest the proceeds of the equity offering to support our growth initiatives in Mexico in the coming years.”

Femsa also participates in the beverage industry through Coca-Cola Femsa, the largest franchise bottler of Coca-Cola products in the world by volume.