pzurita1
Topic Author
Posts: 1243
Joined: Tue Sep 24, 2002 11:21 am

Aeromexico Is Finally Going To Be Sold. Rules Here

Wed Feb 28, 2007 9:15 am

Indeed. AM will sell shares in the Mexican and overseas market.

Here the link (only in Spanish).

http://www.bmv.com.mx/BMV/JSP/ho_sea...B27%252B2007%252B%252B3%25253A22PM

However, some remarks:

1. Employees agree to reduce Labour costs up to US$90M. In turn, they COULD get as much as 15% of total shares.
2. Once the contract with union has been solved, shares will be floated in an IPO in Mexico and other foreing markets (presumably US and Madrid).
3. Current shareholders (IPAB, NAFIN and SHCP) will sell their shares in a secondary offering, ending to Government related shareholders.
4. AFter this, Aeromexico will become the very first Mexican firm to have all their shares in the public market. Currently, most Mexican firms place only less than 30% of their equity in the markets).
5. The former does not neglect the possibility that a major shareholder might be interested and actually acquire a majority stake.

Great news. Still no date for the actual signing of the Union Contracti, first step of AM sale.

PZ
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AM001
Posts: 149
Joined: Thu Jan 29, 2004 1:44 pm

RE: Aeromexico Is Finally Going To Be Sold. Rules Here

Wed Feb 28, 2007 10:18 am

Huzzah! if it is bound to float, great, if it is bound to sink, so be it.

Long live the free market economy!  Wink

AM001
"Je vole car cela libere mon esprit de la tyrannie des choses insignifiantes" - St. Exupery
 
pzurita1
Topic Author
Posts: 1243
Joined: Tue Sep 24, 2002 11:21 am

RE: Aeromexico Is Finally Going To Be Sold. Rules Here

Wed Feb 28, 2007 10:31 am

I wonder if there is any mechanism to guarantee at least the same price in the second public offering. I presume, IPABn Nafin and SCHP will lose some pesos with the different prices as I am sure the share will go down down down very soon.

PZ
Next flight: IAH-DBX-MRU-ANT
 
EddieDude
Posts: 7033
Joined: Fri Nov 14, 2003 10:19 am

RE: Aeromexico Is Finally Going To Be Sold. Rules Here

Wed Feb 28, 2007 2:17 pm

I am not in front of a PC connected to high-speed internet, so I will not even attempt to open the link. Therefore, you'll have real feedback from me tomorrow. However, I have a couple of initial impressions.

Quoting Pzurita1 (Thread starter):
3. Current shareholders (IPAB, NAFIN and SHCP) will sell their shares in a secondary offering, ending to Government related shareholders

1. The article I read today in the press (http://mx.invertia.com) mentioned that a primary offering in Mexico and abroad was going to be recommended by the board to the shareholders meeting. The proceeds of the offering would be used for capex. There was mention that the primary offering might pave the way for a tender offer by whoever is interested further down the road to acquire AM like you mention in the thread opener. No mention of a secondary offer was made in the article I read. As I said, once I look at the link tomorrow I will come back.

Quoting Pzurita1 (Reply 2):
I wonder if there is any mechanism to guarantee at least the same price in the second public offering. I presume, IPABn Nafin and SCHP will lose some pesos with the different prices as I am sure the share will go down down down very soon.

2. Not really. If the offering were a primary and secondary offering at the same time, then the newly issued shares and the shares being divested would obviously be sold for the same price. However, if the secondary offering takes place after the primary one, then the selling shareholders will be taking a gamble. I think that making a primary offer knowing that shortly thereafter the shareholders will want to do a secondary one is a waste of resources. The fees of the auditors, the legal advisors, the duties payable to the National Banking and Securities Commissions, the fees of the Stock Exchange, etcetera, represent a huge expenditure (times 2 if there will be an offering of ADRs or ADSs in the U.S. too). And the time between the making of the decision to do a stock offering and the launch date is a very complicated period of time, where the CFO, the GC and a bunch of other employees devote most of their time to the offering and have little or no time for their day-to-day work. Anyway, give me a day and I'll post some more.
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adriaticus
Posts: 994
Joined: Thu May 06, 2004 3:29 pm

RE: Aeromexico Is Finally Going To Be Sold. Rules Here

Thu Mar 01, 2007 2:28 am

Sorry. I started another thread without noticing this was on already. I have requested deletion of the other thread. What I was saying there was this dissapointingly thin note appeared in "El Economista" yesterday evening. Interesting to note they declare that, as part of the restructuring of the shares, AM shall create savings between US$60 and $90 million. I guess we'll be soon comparing actions with what MX's management is doing with identical purposes nowadays...

Let's see how long this takes, who bids, and for how much...

Interesting to note also, ASPA could get a seat in the Board of Directors... The Board will finallyseat someone who actually knows something about flying!!

<< Gobierno anuncia venta de Aeroméxico

Los accionistas mayoritarios de Aeroméxico -el IPAB, Nafin y Hacienda- tenedores de más del 60% de las acciones de la aerolínea, anunciaron su intención de vender sus títulos en la BMV, a través de una oferta secundaria.

Cinthya Bibian Trejo / El Economista

Los accionistas mayoritarios de Aeroméxico -el IPAB, Nafin y la Secretaría de Hacienda y Crédito Público- tenedores de más del 60% de las acciones de la aerolínea, anunciaron su intención de vender sus títulos en la Bolsa Mexicana de Valores, a través de una oferta secundaria de acciones.
El consejo de administración determinó llevar a cabo una oferta primara de acciones cuyo fin es obtener recursos del mercado de valores que le permita a la empresa invertir en proyectos para incrementar su valor.

Como parte de la reestructura accionaria de Aeroméxico, también se estableció el compromiso de generar ahorros de entre 60 a 90 millones de dólares anuales con sus empleados (pilotos, sobrecargos y trabajadores de tierra).

También, se 10 y 15% de las acciones incluyendo un asiento en el consejo para un representante de la Asociación Sindical de Pilotos de Aviación.
>>

Cheers,
__Ad.
A300/18/19/20/21/30/32/88 An24 ATR42/72 B721/2 B732/3/G/8/MAX B741/2/4 B752 B762/3/4 B772/3 B788/9 Concorde DC8/9/10 E45/70/75/90/95 IL62/86 MD10-30/11 SA340/2000 TU134/154
 
KLM685
Posts: 1507
Joined: Sat May 21, 2005 12:41 pm

RE: Aeromexico Is Finally Going To Be Sold. Rules Here

Thu Mar 01, 2007 2:40 am

Quoting AM001 (Reply 1):
if it is bound to sink, so be it.

Absolutely. Let us hope AM can get out of that administration and start a new prosperous life with a new or several new owners.

Quoting Pzurita1 (Reply 2):
I presume, IPABn Nafin and SCHP will lose some pesos with the different prices as I am sure the share will go down down down very soon.

Definately! Aeromexico must be the biggest financial trap. The one who dares to buy it will really need to see how much money are they willing to give to the airline in order to ripp off the financial disaster and the extreme costs that are going around.

The inicial price will not be the final price of sale as I seriously doubt someone will buy it if it's not for a very big discount. Aeromexico's sale reminds me of The Simpson episode where Mr. Burns sells the nuclear plant to the Germans. Something like that might actually happen.

Quoting Pzurita1 (Thread starter):
AFter this, Aeromexico will become the very first Mexican firm to have all their shares in the public market. Currently, most Mexican firms place only less than 30% of their equity in the markets).

Well if that will put more pressure into making Aeromexico ap rofitable airline so be it. They will need a lot of time, money and hability to achieve it, but it will sure be worth it.

Aeromexico's actual loss is amazing! I'm amazed about how NO ONE within the company and the unions pretends to give up something in order to TRY and save the airline.

Aeromexico's sale will be for sure a much more difficult situation for the new owner as the airline is more pampered than Mexicana was. So it will be a tough fall for some at the beginning.
KLM- The Best Airline in the World!
 
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ghost77
Posts: 4539
Joined: Wed Mar 01, 2000 2:07 pm

RE: Aeromexico Is Finally Going To Be Sold. Rules Here

Thu Mar 01, 2007 4:53 am

Quoting Adriaticus (Reply 4):
The Board will finallyseat someone who actually knows something about flying!!

Finally, the only smart and good thing out from all this CINTRA crap!! AM as well as MX TODAY's BIG crisis and now even being pushed up to its maxium limits because of the new LCC's and the new open market, is nothing else than the result of the crappy administration of both carriers under CINTRA during the last 8 years. AM and MX were rapped by the unions and its employee's and many more... this are the consequences..... a big monster still unsold and one big boat overseas fighting for not to shrink. Both carriers should have been sold for a very good price between 1998 and 1999. CINTRA was a little PRI in our aviation industry.

I yesterday heard Conesa speaking at Formula Financiera... he threw in some interesting numbers.... lets do a little financial analysis...

AM post a net loss of US$50M and a total operational net loss of US$70M. He also yesterday disclosed AM's debt, which rises up to US$498M!!!!!!!! Total net sales for 2006 were for 2.1B, they had a small net increase of 0.31% compared to year 2005. If my numbers do not betrayed me... AM stocks says it is currently valued at US$363M., but who's buying a company with a debt of US$500M???? MX was sold for US$156M and had a debt of US$340M... but a nice building tower that was sold for US$42M and AM gave Posadas back US$12.5M as well as MX-Posadas did some other movements to reduce its debt to US$140M, they have got to an agreement with the ground staff as well as ASPA, just missing the productivity contract with ASSA, which i totally support the second, I read MX requests and i was LOL at the floor of my room!!!! What does AM has to offer??? According to some rumors... i've got MX post a net loss of $US10M last 2006, which is nothing compared to AM's... as well as QA did profits and this last one is running ok and doing nicely, slowly increasing destinations and frequencies. I kind of see a big one going under... either AM or MX... by 2009-2010 as well as ZE in 2007.

My recommendations... ZE's admin... read VASP's history and close your airline or sell and merge with Avolar, Viva or Aviacsa!!! Conesa... read what happened to RG recently... stop flying to the second most expensive airport in the world... yes... NRT only after LHR... inmediately...!!!!! Do some fleet and destinations rationale at AM please!!! Open China... instead...!!! Romano... boy... how can i start with you??? Two years and apparently you haven't learned a thing.... be more human first with all your staff...!!! Read a little about Kelleher, Branson, Bethune, Davis, Neelman, O'Leary... make some phone calls to Fernando Flores.... you to Conesa, i'm sure it won't hurt!!!

g'day!!! hey... 7-7-7 years TODAY of ghost77 @ a.net!!!!
Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
 
EddieDude
Posts: 7033
Joined: Fri Nov 14, 2003 10:19 am

RE: Aeromexico Is Finally Going To Be Sold. Rules Here

Sun Mar 04, 2007 11:21 am

Okay, I read the evento relevante and what it says is that the offer will be a primary and secondary offer AT THE SAME TIME, which basically means that the shares that will be sold will be newly issued shares (so that the company will get fresh money for its needs) AND shares owned by the government (so that the government will get rid of those shares and receive some money in exchange). Now this makes more sense! And yeah, needless to say, the price per share will be exactly the same for both the new shares and the outstanding ones.

I guess that if the government is really seriuos about this plan, they need to take actions that will bring AM towards profitability, otherwise the sale will be a flop.
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