BREWERS' GUARDIAN: Heineken-FEMSA deal progresses

Heineken-FEMSA deal progresses
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Rob Brown on 08 March, 2010 01:01:00
 
Heineken’s buy-out of FEMSA’s beer arm began today with the opening of a
three-month period in which the brewer will buy €100 million of its own
shares.
The shares will then be delivered to the Mexican drinks giant as part of the
so-called Allotted Share Delivery Instrument (ASDI) that will eventually give
FEMSA a 20% stake in Heineken.
The ASDI will see Heineken transferring a total of 29 million allotted shares
to FEMSA in two instalments a year over the next five years. In return, Heineken
will gain complete control of the company's brewing operations.
The Dutch brewer said today it has appointed a bank to repurchase its shares on
the open market in the first phase of the ASDI, which will close at the end of
play on June 8th.
The $5.3 billion deal was announced in January. At the time, Heineken CEO
Jean-François van Boxmeer said: “It transforms our future in the Americas and
marks the next stage in Heineken’s strong association with FEMSA."
FEMSA - owner of the Sol, Tecate and Dos Equis brands - is Mexico’s second
largest brewer after Corona-owner Grupo Modelo. The takeover gives the firm the
right to appoint two non-executive representatives to Heineken’s board.