Last Thursday, December 16, the Mexican stock exchange (BMV) witnessed a historic crash in the shares of Aeromexico, the 87-year-old Mexican airline that lost up to 75.6% of its value in its titles in recent days.
The losses closed on Thursday with a value of 1.76 pesos per share, which represents 52.3% less than on Wednesday, when they were traded at 3.69 pesos per title.
To understand this unprecedented fall, it is necessary to know that everything arises from the Takeover bid launched by one of the shareholders, who will offer each title for a penny, with the aim that a third inject new capital and buy a maximum of 331 million 480 thousand 713 shares.
In concrete terms, this will mean that the shares that each partner has in possession will decrease in value, since with the entry of a third main shareholder who buys each security for a penny, the rest goes down in value, in accordance with Jonathan Felix from the rating agency True.
This does not mean that Aeromexico has lost money or its brand has been drastically devalued, because according to the analyst, “it is not a loss of flow of the airline”, but that the value of its shares would have diversified now and for the future.
Is Takeover bid (OPA) means that the company will receive new money that would represent a structural benefit to the entire airline, because “with this injection of resources, the airline’s capital structure is strengthened. It comes to give resources that are going to give it growth, “he said. Felix.
This movement is part of the Joint Restructuring Plan that the airline filed with the New York Bankruptcy Court since 2020 as a result of economic losses from the COVID-19 pandemic.
In summary, this plan, which is supported by its main partner, Delta Airlines, represents that Aeroméxico will receive around USD 720 million in new capital; While others USD 765.2 million will be in concept of debt, which does not affect passive shareholders.
Through this maneuver, it is expected to conclude with the “voluntary restructuring process” that the company presented before the Bankruptcy Court in New York, but that according to Brian Rodriguez, an analyst at Monex Casa de Bolsa, the public offering will represent “the payment of the debt in exchange for control of the company.”
“If the takeover bid is carried out, Aeromexico would practically delist from the Stock Market because the shareholding would remain in the hands of Private capital, but that already has a name, and that it does not intend to be on the company’s “float”, which would remain at 0.01%, which would no longer be representative, “said Rodríguez, according to The financial.
These words refer to the fact that the shares offered in a penny are in the direction of a third private partner that will be awarded with 49% of the airline and who, in a certain way, would take the place of multiple passive shareholders, who would see almost completely diluted its market value.
“Once the terms of the Plan and the resolutions of the Shareholders’ Meeting take full legal effect, current shareholders will be almost completely diluted, so their remaining shareholding is likely to be minimal, if any, and the value expectations regarding their current shareholdings may be close to zero, “said the airline after announcing the Takeover bid.