Bill Gates Buys Femsa Stake

Software giant Microsoft chairman and multi billionaire Bill Gates has today announced he has acquired a minor stake in a major Mexican brewery, in a move that has been seen as a private investment made through the guise of his private asset management firm Cascade Investment.

The 3% stake in brewer Femsa, which produces Sol and also provides bottling services for Coca Cola, is said to be worth just under $400 million, seeing share prices in the company leap by 7.5% in its US listed securities, whilst Mexican shares saw a 7.4% leap in value on the news.

Femsa is the brand behind the successful Sol brand of lager, whilst also working closely to provide contracted services to Coca Cola. As well as being the world’s second largest Coca Cola brewer it also operates the distribution rights throughout Southern America, in a contract that brings in significant revenue for firm.

Cascade’s purchase sees further progress towards building up a stake in the company, which has been seen as a strategic goal for the company owned separately by the Microsoft founder in a move designed to give the billionaire a holding in Mexico’s second largest brewery company.

The move to acquisition has been seen as a positive step for Femsa, who have today suggested it underlines their commitment to providing investor value, and the extent of their prospective growth over the coming twelve months.

The acquisition by Bill Gates’ company has not only increased share prices for Femsa today, but also helped create media interest around the company, which it is hoped will generate further investor interest in the coming months.

It remains to be seen whether Bill Gates’ investment will yield a return, and whether the move will see further revenues generated for Cascade’s asset management business.

Story link: Bill Gates Buys Femsa Stake