Grupo México announced this Tuesday that it does not plan to significantly increase its debt if the purchase of Banamex is completed.
“The maximum credit that could be required if the operation were to be completed for 100% of the shares would be less than 2 billion dollars, which are covered by lines of credit already agreed upon,” he indicated in a statement to the investing public.
The message tried to reassure the market, after the conglomerate’s shares sank 15.43% on Monday following Friday’s announcement that it was once again seeking to acquire the financial group. This Tuesday the company’s securities on the Mexican Stock Exchange advanced 1.35% at the close of the day.
Read: Grupo México presents offer to acquire up to 100% of Banamex
To reinforce the message to its investors, Grupo México stated that it will continue with the investment projects already announced by its Mining, Transportation and Infrastructure divisions, regardless of whether the purchase of Banamex is carried out or not.
The company chaired by Germán Larrea maintained that in the second quarter its net debt was 375 million dollars, equivalent to 0.1 times its EBITDA level, which gives it ample margin to make the purchase and carry out the operations and investments of its three divisions, without losing its “solid financial balance.”
He said that the proposal presented on Friday to buy Banamex contemplates that the group retains 60% of the total value of the investment, and will invite other Mexican private investors and Afores to acquire the remaining 40%.
“Today, the company already has agreements with Mexican investors to cover this last percentage and could subsequently carry out a Public Offer to invite small and medium-sized investors and democratize and make the capital marketable,” he explained.
It added that it established in its offer a period of 10 days for Citigroup to consult with its Board of Directors and main shareholders, and take into consideration the statements of the US regulatory authorities, complying with its fiduciary responsibilities.
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Grupo México specified that it does not contemplate increasing its offer for 100% of the shares, which today is already higher than the one already announced by Citigroup by only 25%.
The company highlighted its experience in high-value businesses and activities with a long-term vision, as well as its operational and financial discipline in the development of its investments, which has allowed it to prioritize strategies with adequate returns for investors and shareholders.
He pointed out the acquisition of Buenavista del Cobre, Ferromex, SPCC’s mining assets in Peru, the American mining company Asarco and the short railway lines in the United States.
“The purchase of Banamex aims to retain its entire management team, in addition to creating a new specialized executive committee, which would avoid any form of distraction of the teams that lead the three divisions that currently make up the Group,” he said.
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