Saturday, September 30, 2023

Mexicana FEMSA agrees to sell stake in JETRO Restaurant Depot in the US

MEXICO CITY (Reuters) – Mexican bottler FEMSA said on Wednesday it had reached a definitive agreement for the sale of its minority position in US self-service chain Jetro Restaurant Depot (JRD) for $1.4 billion in cash.

Shares of FEMSA, which on Tuesday launched a second sale offer for its shares in Dutch alcohol maker Heineken, rose more than 3% on the Mexican stock market, above the main local stock index, the S&P/BMV IPC, which gained 0.66%. declined. Immediately after starting the day.

The transaction will close in the second quarter of 2023, when the company will receive $467 million, and the rest over the next two years. The company, which controls the Coca-Cola FEMSA bottling company and operates the chain of stores, said a statement. Oxo of convenience.

FEMSA announced the signing of a non-binding memorandum of understanding to acquire a minority stake in JRD for US$750 million in 2019 and reported the closing of the transaction two months later.

In February, after announcing an initial offer to sell its shares in Heineken, the Mexican firm said it aimed to focus on its core verticals, including building “a powerful value-added financial ecosystem”.

In October 2022, the company revealed that its fintech unit, Spin by Oxo, could reach 10 million users by 2023, leveraging Oxo’s over 20,100 locations that allow it to connect customers to debit card services and digital accounts. allows.

In a research note, Banorte said disinvestment in JRD “reflects the positive conviction of the company to achieve the established objectives.”

In addition, he recognized that “having an excess cash position, it can be used to pay down debt, although it still leaves open the possibility of extraordinary dividends or share repurchases.”


Nation World News Desk
Nation World News Desk
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