Mexican manufacturer of suspension and brake systems Rassini announced that a Special-Purpose Vehicle (SPV) created by a group of investors headed by the company’s CEO Eugenio Madero has launched a tender offer through December 3 to buy all its shares ahead of a possible delisting from the Mexican stock exchange.
“GGI INV SPV, S.A.P.I. de C.V. has launched a tender offer to purchase all of the outstanding ordinary, nominative, Series “A” shares, with voting rights, as well as all of the common share certificates (CPOs) representing each one of them one ordinary, nominative, Series “B” share, with voting rights and with no par value, and one ordinary, nominative, Series “C” share, with no voting rights and no par value,” said the company in a statement.
Company sources told El Financiero that this decision was taken because of current macroeconomic conditions that are impacting the auto industry as well as the stock market in Mexico.
Rassini said it would offer up to US$ 665.9 million for the stock. That comprised buying A shares at US$ 2.08 per share and US$ 4.16 for each Rassini CPO. The share price hiked about 16% on Thursday, Expansion reported.
According to some analysts, Rassini stock has been unjustifiably punished by the market due to the uncertainty related to the renegotiation of NAFTA. “The share price just did not follow the fundamentals of the company,” said one of them, who considered that the offer is attractive.
Rassini is one of the largest producers of suspension components for light commercial vehicles and the largest vertically integrated disc brake producer in America. The company operates eight manufacturing plants and five technical centers in Mexico, the United States and Brazil.
The company posted earnings (EBITDA) of MXN 749 million (around US$ 40 million) in the third quarter of 2018, 10.3% more than in the same period last year, due to a recovery in the production of trucks in Brazil, market where they sell suspensions for this type of vehicles.