Jose Cuervo, the world’s largest tequila maker, postponed plans for an initial public offering after reaching out to investors to get a sense of demand, according to a person with knowledge of the matter.
Jose Cuervo had planned to begin formally marketing the offering to investors in Mexico on Thursday but decided to wait after initial talks signaled a lack of enthusiasm, said the person, who asked not to be identified because the information is private. The Mexico City-based distiller was targeting a sale of as much as $1 billion.
The tequila maker will reassess the outlook for a sale in January, the person said. Jose Cuervo’s investor-relations office didn’t reply to a voicemail and e-mail seeking comment. Press officials at Banco Santander Mexico SA, the lead underwriter for the sale in Mexico, didn’t immediately provide comment. Morgan Stanley, the lead international underwriter, declined to comment. The postponement was reported earlier by Reuters.
Donald Trump’s surprise victory in the U.S. presidential election upended financial markets in Latin America, raising concerns that Jose Cuervo would be seeking to sell shares at an inopportune time. Mexico’s benchmark stock index has plummeted more than 6 percent since the U.S. ballot took place.
News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.