(33,51 EUR, 0,30%) announced it will start today the next phase of its share buyback program, for a maximum value of € 225m. This phase runs until 31 October.
The shares repurchased will be delivered to FEMSA as part of the Allotted Share Delivery Instrument (ASDI) agreement concluded with the latter on the 2010 purchase of its beer activities, FEMSA Cerveza. Under the terms of that agreement, will deliver approximately 29.2m Heinekenshares to FEMSA (over a period of maximum 5 years). So far approximately 23.0m shares have already been repurchased of which 20.3m shares were already delivered to FEMSA.
Conclusion:
Today’s announcement is no surprise and shows again the fast executionof the Allotted Share Delivery Instrument (after less than 1.5 years has already repurchased 79% of the agreed shares of which the maximum repurchase/delivery timeframe is 5 years). No change to our view that is underappreciated and undervalued at a P/E12E of 11.3x and an EV/REBITDA12E of 6.35x. BUY, € 45 target price.