Closing the way to the dissatisfied
The family that owns Bachoco reported on Friday, March 10, that the purchase of the share package was made through the Edificio del Noroeste company, in which family shareholders participate, through operations individually contracted with Grupo Bursátil Mexicano (GBM casa Stock Market).
But with this purchase, the company not only obtained the percentage required to go public, but also left behind the controversy that was generated by the price -of 81.66 pesos-, which the Robinson family established for each share of the company. and that it was in the hands of the investing public.
At the time, a group of US and Mexican funds even sent a letter to the station’s board of directors in the form of a complaint in which they ruled that the price of the offer was “an abuse of power by the family.”
Other investors went further and initiated legal actions to challenge the approval of the CNBV, regarding the share price. Bloomberg reported in October that a federal judge ordered the regulator to present the documents on the approval of the Public Offer of Acquisition of shares (OPA).
In November 2022, the company presented the results of its takeover bid, in which the family managed to increase its stake from 73.3% to 87.7% by acquiring 86.6 million shares. The remaining 12.3% was in the hands of investors.
“By accepting and closing this process, those who disagree will no longer have power, because the family already has the majority (of shares to start the IPO process),” says Marisol Huerta, a stock market analyst at financial group Ve por Más. “Surely the company will achieve delisting, it has been looking to end this process for a long time and this was the option they found,” he adds.
When Bachoco announced its intention to leave the stock market, on March 25, it closed its listing on the Stock Market at a price of 66.16% per share. Almost a year after the announcement, on March 13, the company’s shares closed at 91.68 pesos each, which means an increase of 38.6%.
On March 10, when the repurchase by Edificio del Noroeste was announced, 7.7% of the outstanding shares moved on the BMV. On this day, Bachoco’s papers reached a maximum of 92 pesos.
What’s next for Bachoco?
Industrias Bachoco debuted on the Mexican Stock Exchange and the New York Stock Exchange (NYSE) in September 1997. After 25 years in the stock market, Bachoco’s controlling family made public its intentions to take the company off the stock market, without revealing the motive behind this move. This, however, does not mean that the issuer will disappear from the Stock Market, since it can see an option in the debt market.
“Only they know the reason, but one of the issues is that the station had very strong returns: sometimes it presented very good profits, then one and the market punished this and did not allow it to have a significant valuation and generally it was always at a discount Huerta says.
In addition to Bachoco, Sanborns, Lala and Bio Pappel are other companies that are in the process of or have already left the stock market.