FEMSA Announces Accelerated Share Repurchase Agreement
Rhea-AI Summary
FEMSA (NYSE: FMX) has announced entering into an accelerated share repurchase (ASR) agreement with a U.S. financial institution to repurchase company shares through American Depositary Shares (ADS). The agreement involves a total repurchase amount of $250 million.
Key details of the ASR include an initial delivery of 483,559 ADSs scheduled for May 20, 2025. The final number of shares to be repurchased will be determined by the daily volume-weighted average price of FEMSA's ADS during the agreement period, minus a discount. The ASR is expected to conclude by the third quarter of 2025.
Positive
- Significant share repurchase program of $250 million demonstrates company's financial strength
- Commitment to returning capital to shareholders through buyback program
- Strategic move aligned with company's capital allocation framework
Negative
- Reduction in cash reserves due to $250 million buyback commitment
News Market Reaction 1 Alert
On the day this news was published, FMX gained 3.48%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
MONTERREY, Mexico, May 19, 2025 (GLOBE NEWSWIRE) -- Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA” or the “Company”) (NYSE: FMX; BMV: FEMSAUBD, FEMSAUB) today announced that, as part of its ongoing efforts and consistent with its capital allocation framework and commitment to enhance capital returns to shareholders, it has entered into a derivative instrument known as an accelerated share repurchase (“ASR”) agreement with a financial institution in the United States of America to repurchase Company’s shares through the acquisition of American Depositary Shares (“ADS”). Under the terms of the ASR agreement, FEMSA has agreed to repurchase from such financial institution an aggregate amount of USD
The total number of shares ultimately repurchased under the ASR agreement will be based on the daily volume-weighted average price of the Company’s ADS during the term of the agreement, less a discount. The final settlement of the ASR agreement is expected to be completed, at the latest, in the third quarter of 2025.
About FEMSA
FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through a Proximity Americas Division operating OXXO, a small-format store chain, and other related retail formats, and Proximity Europe which includes Valora, our European retail unit which operates convenience and foodvenience formats. In the retail industry it also participates though a Health Division, which includes drugstores and related activities and Spin, which includes Spin by OXXO and Spin Premia, among other digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume. Across its business units, FEMSA has more than 392,000 employees in 18 countries. FEMSA is a member of the Dow Jones Best-in-Class World Index & Dow Jones Best-in-Class MILA Pacific Alliance Index, both from S&P Global; FTSE4Good Emerging Index; MSCI EM Latin America ESG Leaders Index; S&P/BMV Total México ESG, among other indexes.
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1 ADS underlying units consist of FEMSA’s BD Units, each representing one Series B Share, two Series D-B Shares and two Series D-L Shares, without par value.
Investor Contact (52) 818-328-6000 investor@femsa.com.mx femsa.gcs-web.com Media Contact (52) 555-249-6843 comunicacion@femsa.com.mx femsa.com
FAQ
What is the size of FEMSA's (FMX) accelerated share repurchase program announced in May 2025?
When will FEMSA's (FMX) 2025 accelerated share repurchase program be completed?
How many ADSs will FEMSA (FMX) receive initially under the May 2025 ASR agreement?
How will the final number of shares be determined in FEMSA's (FMX) 2025 ASR program?
