Cleary Gottlieb advised Fomento Económico Mexicano S.A.B. de C.V. (FEMSA) in its accelerated share repurchase of $400 million of its American depositary shares (ADSs).
Under the variable tenor accelerated share repurchase transaction, FEMSA will initially receive an upfront delivery of shares from its financial institution counterparty. At final settlement, which is expected to be completed no later than the third quarter of 2024, FEMSA is expected to receive additional shares based on the volume-weighted average price of FEMSA’s ADSs during the term of the transaction, subject to certain limitations.
FEMSA is a leading Mexican company that participates in the beverage industry through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world, and in the retail industry through FEMSA Comercio, operating OXXO, the largest and fastest-growing chain of small-format stores in Latin America.