(Bloomberg) -- Shares in Mexico’s Fomento Economico Mexicano SAB, also known as Femsa, jumped Wednesday after the company said it plans to divest a $1.4 billion stake in Jetro Restaurant Depot just after unloading the rest of its position in the Heineken Group.
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The sales are part of Femsa’s decision to whittle down holdings and focus on its core businesses as a Coca-Cola bottler and operator of convenience stores. Shares rose as much as 4.5% in Mexico City before paring gains.
Itau BBA analysts said FEMSA is executing its divestment strategy faster than the market had expected. The Jetro deal on top of Tuesday’s sale of a €3.3 billion stake in Heineken will push the cash pile on Femsa’s balance sheet to more than $8 billion, Itau said.
“The big question remains on capital redistribution,” analysts led by Alejandro Fuchs wrote in a note. “It is imperative for the company to announce a formal strategy.”
Femsa will receive the payment for Jetro in cash, with $467 million payable upon the close of the second quarter and the remainder payable over two years, according to a statement. The buyer was not identified.
Femsa announced on Feb. 15 a “strategic review of its business platform” by its board of directors, aimed at focusing on verticals including its bottling unit and retail stores Oxxo.
In that statement, the company said it approved a series of divestments, including its stake in the Heineken.
Read More: Mexico Coke Bottler Femsa Sells €3.3 Billion Heineken Stake
(Updates with analyst comment in paragraphs three to five)
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