- FEMSA looks well placed to open more stores in Mexico where the convenience store market is highly fragmented
- It has recently sold non-core assets and simplified its structure
- Its unlisted assets have a low implied valuation
Joe Bauernfreund, chief executive officer of Asset Value Investors which runs AVI Global Trust (AGT), explains why the trust invests in Mexican family controlled holding company FEMSA (MX:FEMSAUB).
"Over the past year, FEMSA has been one of our strongest performers and incapsulates what we look for in an investment. While the family initially built their wealth in brewing, establishing Mexico’s first brewery in the 1890s and eventually selling their business to Heineken in 2010, our interest always lay in FEMSA Comercio – an unlisted business which operates OXXO-branded convenience stores and other small-format retail stores across Mexico and Latin America.