Activist Investor Marathon Urges Cuervo To Relist On “Major Global Stock Exchange”

New York-based Marathon Partners has urged Grupo Cuervo (Becle) to relist its shares on a “major global stock exchange” to unlock shareholder value. The investment firm, which owns 15 million shares of common stock in the spirits giant, asserts that Cuervo’s years on Mexico’s Bolsa Mexicana de Valores (BMV) exchange have limited liquidity and imposed significant costs to shareholders.

Marathon’s letter, delivered to Cuervo chairman Juan Domingo Beckmann and the board, suggests that other alternatives to relisting could include potential mergers or sales, or going private again. Cuervo saw sales grow 6.2% to nearly $2.6 billion on a pro forma basis last year, despite a volume decrease of 1.4% to 27.1 million 9-liter cases. Currency fluctuations ate into the company’s results on a reported basis, however, with sales down 3%—factoring in currency changes—and EBITDA down 26% to $428 million.—Shane English

Tagged : Grupo Cuervo, Marathon Partners

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