The expert said that the new decision generates a bit of uncertainty since with an IPO there must be a valuation and it is not very clear how to obtain a better valuation than with the direct purchase.
“For me, this decision by Citi has to do with the decision that Germán Larrea got off (from the purchase),” he added.
Banamex will maintain the business of credit cards, retail banking, consumer credit, mortgage, insurance, pensions, Afore, deposits and a complete offer of Business Banking products.
“The approximately 38,000 employees who contribute to the business, as well as the art collection and historic buildings, will remain as part of Banamex,” the bank added.
What will the Banamex sale process be like?
The bank is expected to work to split into two: Banamex and Citi Mexico, which will serve large companies.
“This work, including the required regulatory approvals, is in progress,” the bank said.
Citi expects the separation of the businesses to be completed in the second half of 2024 and the IPO to occur in 2025.
While the business is sold, Banamex will continue to report its results as part of Citigroup until the Banamex shares it owns are less than 50%.
When Citi has less than 50% of the bank’s shares, it will stop reporting the Business in its consolidated financial statements.
Good opportunity for investors
In a conference on May 9, José-Oriol Bosch, general director of the BMV, said that it would be a very good idea to sell Citibanamex’s shares on the Stock Market, since listing a company or a part of it has great advantages. as well as the participation of the investing public.
“If that were the case, it would be very welcome and we would be very happy to work with that option,” he added.
“The benefit of this type of operations in the Mexican market and in the investing public in general, is that they can participate (in the purchase of Banamex), that is the essence of the Stock Markets. Then we will have to be attentive to the process and if we can add something from the Stock Market, well welcome, to be able to give an outlet to this operation, ”said Marcos Martínez, president of the Mexican Stock Exchange (BMV), at that same conference.
The BMV told Expansión this Wednesday that they are convinced that it is very good news that the stock market is being considered for this operation, since they have the infrastructure, the window for access to financing and the capacity to accompany a process of this size and importance.
“For the BMV Group it is excellent news to participate in the operation, either through the issuance of new shares, as is being considered, or any other financing possibility that it requires.”
With information from Rafael Mejía.