Late last month, the Televisa network, whose shares have plunged more than 40% so far this year, presented a plan to spin off its sports and gaming operations, arguing the move would cut corporate spending.
Some analysts said that both Alfa and Televisa could consider further spin-offs as they seek to boost their depressed valuations. Other companies, such as the Coca-Cola bottler and retailer, whose shares are down 3.3% year-to-date after gaining 6% in 2021, could follow suit.
Such measures have provided some boost to share prices under pressure from concerns about slowing growth in Mexico, although they have been far from a panacea.
Alfa lost 2.69% the day after its shareholders approved the Axtel spinoff, while Televisa’s shares rose 0.86% the day after it revealed plans for a similar move.
For its part, América Móvil’s shares have risen 13% since September 29, the date on which its cell tower unit Sitios Latinoamérica debuted on the market.
Companies with diversified business units, such as Alfa, have tended to underperform the index, but the amount has varied due to the nature of their businesses, experts added.
“There is always an ugly duckling in conglomerates and spin-offs allow the parties to be separated so that the different cycles that one company goes through do not contaminate the others,” said Moody’s analyst Nymia Almeida.